New mortgage protection insurance

Thursday, 21 Feb 2008 15:08 Shepherds Friendly Society is bringing out a new mortgage payment protection insurance (MPPI) policy with cover up to five years. The policy can provide protection for the full term of a special mortgage deal for example a two-year fixed rate deal or a four-year tracker, as opposed to the usual 12-month term of such insurance.

Mortgage payment protection insurance has hit the headlines recently about the way policies are tagged on to mortgages by lenders and concerns about low pay-outs when claims are made, so Shepherds Friendly is aiming to win back customer confidence with a customer friendly MPPI policy.

The policy can cover up to 130 per cent of monthly mortgage repayments up to ВЈ2,000 a month so other bills are met in the event of a claimant being unable to work due to an accident, illness or losing a job. Premiums range from ВЈ2.07 to ВЈ15.94 depending on the length of cover and age of customer.