Mortgage Protection Insurance has historically been dominated by the credit providers and Banks due to their unique market position; right at the point of sale. For many years this position went unchallenged. Lenders soon cottoned on to the fact that customers really needed the peace of mind that Mortgage Protection Insurance could provide, which made it an easy sale. Sales practices became sloppy and the quality of policies became questionable, all in the pursuit of profits.
Well, unfortunately their gravy train has now been derailed by the Competition Commission, which has ruled that the sale of Mortgage protection policies at the point of sale is anti competitive, as the consumer is effectively taken out of the market, without having the opportunity to shop around for mortgage protection insurance.
Now for the Banks, who earn vast sums of money from the sale of these policies, this news could not have come at a worse time, however for the customer, who may well need a Mortgage Protection Insurance lifeline, more now than at any other time in recent history; the commission’s ruling has to be great news.
Increased competition leads to lower prices, technical innovation and greater market awareness, all good news.
If you have been thinking about purchasing a product that will make your mortgage payments, when you can’t, perhaps through redundancy, now is the time to look for a mortgage protection insurance policy that fits your needs.
Don’t forget that even if you have an existing policy which was bought from a lender you are able to switch cover to a new provider. As always, remember to read the policy terms to ensure you remain fully covered.