Young people are set to benefit from the launch of the first fully age-banded Mortgage Payment Protection Insurance solution incorporating a three-month initial payment holiday.
Launched by Berkeley Alexander, MortgageLIFELINE can cut the cost of MPPI cover by almost 40% for a 30 year old.
While traditional MPPI policies are flat-rated for premiums, a one size fits all approach,Mortgage LIFELINE introduces age banding and a three month initial payment holiday into this market for the first time.
Research carried out by Berkeley Alexander shows that 85% of people taking out an MPPI policy are less than 45 years old.
Designed specifically for the intermediary market, and launched today in partnership with underwriter Genworth Financial, this product will save a typical 30-year-old policyholder (seeking 500 per month ASU cover for a benefit period of 12 months) almost 40% in monthly premiums compared to a similar product sold by some major high street lenders.
Geoff Hall, director of Berkeley Alexander, says: “Younger borrowers should be paying less for their MPPI policies.
“Our aim was to deliver better value for the younger end of the market by removing the cross-subsidy that exists across age bands in flat-rated MPPI products together with the additional features we’ve created including a complete toolkit to help people get back on their feet.”
Prices start from as little as 1.17 per 100 of mortgage repayment for an 18-24 year old arranging an unemployment only policy or 2.16 for full ASU cover.
Mortgage LIFELINE is available to new and existing mortgage borrowers and includes a 30-day excess period and an option of back-to-day-one cover.
A commission of 27.5 %, is payable at inception and renewal for the lifetime of the contract for electronic submissions.
To support the intermediary market, Berkeley Alexander is offering flexible administration including on-line, paper and CD submission of business for MortgageLIFELINE.
Other features of MortgageLIFELINE include 12 months cover for accident, sickness and unemployment, a free three month start period (premiums start in month four) and one of the most comprehensive back to work packages in the market.