Abbey offers payment protection savings

Abbey is offering people the chance to save 25% off their annual mortgage payment protection.

It’s offering three months of free mortgage payment protection cover for all new applications until February 28, 2005.

Abbey research shows that only 36% of people are covered for accident, sickness and redundancy, with men making up just under 30% of this figure and women seemingly better prepared (39%).

But worryingly, 45% have no mortgage payment protection cover whatsoever.

Paymentcare, Abbey’s comprehensive mortgage payment protection insurance policy, is available for accident, sickness or redundancy, and homeowners can choose any combination of cover that best suits their needs.

If Paymentcare protection is taken out alongside an Abbey mortgage, there will be no qualifying period at all for the policy’s unemployment cover – the normal 60-day period has been waived.

Abbey’s three months free cover offer may particularly appeal to existing mortgage-holders who have recently changed jobs and do not have the protection of a good redundancy package, or cover for their regular outgoings such as life assurance premiums, utility bills and even credit card payments.

There is no limit to the number of claims that can be made during the life of a Paymentcare policy, and payments under it are usually made monthly direct to the customer, putting them in control of meeting their financial commitments.

Richard Field, director of insurance at Abbey, says: “In 2004, we have had four interest rate rises, and coupled with Christmas, money could be tight at this time of year.

“Abbey’s Paymentcare policy could provide financial peace of mind, and the special offer is Abbey’s way of giving customers a bit of a financial break over Christmas and the New Year.”