Under the Competition Commission’s PPI order, from April 6 intermediaries will no longer be able to sell accident, sickness and unemployment style insurance products – including PPI and mortgage payment protection insurance – at the point of sale of a mortgage.
While advisers will still be able to provide a quote at any time, they will only be able to sell a policy seven days after either the date the lender formally makes the mortgage offer or the date the quote is provided, whichever is later.
A survey of 117 mortgage brokers carried out by LV= shows that 28% are not aware they will no longer be allowed to sell products of this kind at point of sale from April 6.
The poll reveals that while 72% know the ruling is coming into place, 52% are not fully aware of what the new rules mean.
Some 71% of respondents feel that there is not enough guidance on how the new changes should be implemented.
One in five brokers say they have already reviewed their processes to ensure they are compliant with the changes and a third say they have allocated time and resources to prepare.
Mark Jones, head of protection at LV=, says the changes will have a significant impact on the way protection products are discussed when consumers are taking out a mortgage.
He says: “It’s worrying that many mortgage advisers aren’t aware of what they need to review ahead of this ruling coming into force, or even that new rules will apply.
“Many advisers will now be looking at products to sell as an alternative to MPPI, and we hope they use this opportunity to discuss longer-term income protection products with their clients.”