Mortgage brokers to be affected by PPI sales restrictions

The Competition Commission recently announced that it was planning to introduce a ban on the sale of Payment Protection Insurance (PPI) at the point of sale for loans and credit cards. There would be a 14 day period before the finance provider could offer the customer a PPI policy to protect their new finance agreement.

The banks and finance companies make huge profits out of selling these policies which generally offer poor value for money. The main reason for this is that the purchaser has no time to look around at alternative PPI policies, they are asked to commit to a policy that they have not shopped around for. So the restriction on PPI sales means that customers who do want payment protection insurance (PPI) can do so in their own time and search out a good value policy that suits their needs and not those of the finance company.

Unfortunately, we have recently learned that this restriction will also apply to mortgage brokers and financial advisers who wish to offer Mortgage Payment Protection Insurance (MPPI) to their clients. This seems a little restrictive where the adviser or broker is actually providing advice on what is best for the client rather that just selling a policy. Mortgage brokers will always want to build long term relationships with clients so the last thing they want to do is be over zealous and offer a product which is not right for the client.

Only time will tell whether the Competition Commission proposals for the sale of PPI definitely include mortgage brokers but this look to be the case so far.

Where to find mortgage repayment insurance

Where can you find mortgage repayment insurance?

Mortgage repayment insurance will protect your monthly mortgage payments from a period of unemployment due to incapacity or redundancy. Mortgage repayment insurance can be obtained from a variety of sources including your mortgage lender.

Mortgage payment protection insurance or MPPI is rarely good value if bought from your mortgage lender. Whilst the MPPI policy might provide a good level of cover the premiums are not generally competitive.

Buying mortgage repayment insurance from an independent company will give you greater choice of cover and premiums. It also has the added advantage that your mortgage insurance policy is not tied to your lender. These independent mortgage repayment insurance policies compete on price and cover and so need to have excellent overall benefits for you. They also do not include huge commissions that the mortgage companies demand.

Mortgage repayment insurance policies provide a tax free monthly benefit when you claim, a lifeline when your income stops due to sickness or unemployment. For more details on the Mortgage repayment insurance we offer please visit our MPPI insurance page here: http://www.enhancedwealth.co.uk/asu/mppi/index.htm

Mortgage payment protection insurance - Are you covered yet?

Mortgage payment protection insurance is designed to protect your mortgage payments in the event of accident, sickness or unemployment. There are many policies that cover accident, sickness or unemployment together and they are commonly referred to as ASU policies.

Where ASU policies are designed to cover a mortgage there are some differences. A mortgage unemployment insurance plan can protect the monthly mortgage payment as well as other regular household expenditure. You can increase the cover amount by 25-30% to include other important home insurances.

In these uncertain times it makes sense to insure and protect your income against the worst. A mortgage payment insurance policy provides just that protection. If the worst does happen then the MPPI policy will maintain your mortgage payments for up to 12 months, giving you time to get back on your feet.

We offer Mortgage payment protection insurance from British Insurance and their Mortgage payment protection insurance policy has a five star rating from Defaqto, it also allows you to insure upto £3000 per month. This excellent policy also offers age related premiums and back to day one claims.

If you would like to find out more then please visit http://www.enhancedwealth.co.uk/asu/mppi/index.htm where links to the free quote and full policy details are available.

Get your mortgage payment protection insurance today

Ask yourself these following questions. What is the single most expensive thing you have ever purchased? What is the single most important thing for you to continue living a comfortable life? What has been the most serious investment you ever made? For almost everybody the answer to all three of these questions will be the same, their home. So if we have identified that for most people, their home is the most valuable asset in their lives, how come so many people neglect to protect it sufficiently? Mortgage payment protection insurance (MPPI) is available cheaply and easily from a whole range of sources, so why do people still refrain from insuring their home?

In the UK, statistics gathered over the last three decades show us that: Three out of every ten people will suffer from a serious illness leaving them unable to work for an extended period. Four out of ten people will find themselves unexpectedly unemployed for a period of six months or more. One in one hundred people will be the victim of an accident so severe that they will never be able to work again. For most people who confront these situations without mortgage payment protection insurance it means one thing only, the repossession of their home by the establishment that furnished them with a mortgage.

There really can be no reason why any home owner does not take out some form of mortgage payment protection insurance, it is neither costly nor difficult to acquire. Typically you will be protected for anything from 12 months up to 24 months should you fall unemployed or suffer a long term illness, and in the case of a bad accident, you may find that your mortgage will be paid off in full, although this very much depends upon the nature of the accident and the quality of your mortgage payment protection insurance policy.

A series of letters are used to define a mortgage payment protection policy. A is used to signify accident cover, S is used to signify sickness cover and U is used to signify unemployment cover. The most common form of mortgage payment protection insurance is therefore known as an ASU, although it is quite possible to obtain cover for just accident and sickness (AS) or any other possible combination if you already have an active insurance policy covering you in one or more areas.

We live in unstable times, anybody who has made a major effort and capital investment to buy  their own home, needs to take mortgage payment protection insurance seriously. There is no reason for anyone to lose their home should they become unemployed, fall sick or be involved in an accident, when modern mortgage payment protection insurance products are well priced, increasingly consumer focused, and available to almost anybody through a simple application process. If you require more information about mortgage payment protection insurance, you should speak to your insurance broker, who will be able to offer best advice and help you obtain the right protection for your home.

Do you need mortgage protection insurance?

With the world economy taking a nose dive, large financial institutions beginning to struggle and established corporations feeling the pinch, nobody can be sure of a job for life. Anybody who has the responsibility of making mortgage payments each month would do well to consider taking up some form of mortgage protection insurance.

Mortgage protection insurance can cover you for those unexpected bends in the road, which otherwise would leave you struggling to make your monthly repayments and see your home at threat of repossession. Not only does mortgage protection insurance protect you from unexpected periods of unemployment, it will also make sure you are well protected should you fall ill or become the victim of a dilapidating illness. If we consider that three out of every ten people will experience some form of extended illness during their working life, then it makes complete and utter sense to ensure that if you are unlucky enough to be part of this statistic, then your home is protected and safeguarded.

Mortgage protection insurance will usually be offered over a twelve month period of cover, meaning that if you were to fall ill or become unemployed, then you would receive benefit for 12 months from the start of your claim. additionally, almost every mortgage protection policy will contain a 30 day deferment period, meaning that any claim made will not be paid for the first 30 days, however, many policies also contains a “back to day one” clause, meaning that the 30 day deferment will be paid after 30 days all the way back to the first day of claiming.

The main form of mortgage protection insurance is often termed an ASU (accident, sickness and unemployment) policy, although you may well also be offered an AS (accident and sickness) or an AU (accident and unemployment). Depending upon your own financial situation and whether you have additional insurance cover in place to cover sickness and accident, you will need to decide upon the type of mortgage protection insurance that suits you best.

The unfortunate situation seems to arise frequently, that the people who could benefit the most from taking up some form of mortgage protection insurance, are the people least likely to do so. Anyone who is already finding it hard to meet their current level of debt each month should definitely consider mortgage protection insurance a must have financial product, as it is unlikely that they would be able to meet their monthly mortgage repayments should they become ill or find themselves without work for even a short period of time.

If you feel that you would benefit from a mortgage protection insurance policy, then you would be best advised to take the advice of a professional insurance broker. Your broker will be able to search a whole range of mortgage protection insurance products and find the one that fits your own particular needs most closely, and that will protect your home the best.

Enhanced Wealth to offer Defaqto 5 star MPPI policy

Enhanced Wealth is pleased to announce that we will be offering the Defaqto 5 Star Mortgage Payment Protection Policy (MPPI) from next week.

This new policy from British Insurance Limited will be available online from Monday 7th July 2008.

The policy offers benefit levels up to £3000pm and back to day one cover.

More details to follow..