Are your customers shopping around for MPPI?

It's hardly surprising borrowers often take what they see as the easy option and opt for base level cover, and possibly more expensive cover direct from their lender.

This is where intermediaries can save their customers both time and money by searching the market and securing better deals from the extensive list of providers.

Independent search facility, moneyfacts.co.uk is the latest to point out that borrowers are losing out by not shopping around and it promotes the benefit of using an intermediary.1

Moneyfacts.co.uk Mortgage Analyst Rachel McKay says: "How many customers accept the MPPI policy offered to them by their mortgage provider? By the time they've been through their mortgage application process, which can be a lengthy ordeal, following increased regulatory requirements, they sign up to the lender's own policy, just to save time.

"Consumers are aware that shopping around for MPPI cover, either direct or via their IFA, is an avenue that is well worth exploring."

The intermediary, as the expert is ideally placed to search the market for the most appropriate policies at the best price and they know where to look for the best deals.

A borrower could feel overwhelmed by the financial product comparison websites. This is where the intermediary can provide them with a product suited to their needs.

The latest Council of Mortgage Lenders (CML) figures on repossessions stated the total number in 2005 was 10,260 -70% higher than the previous year, reiterating the importance of MPPI.2

The CML is currently actively reviewing the MPPI 'baseline', which sets out the minimum level of cover that MPPI should provide. With approximately nine out of ten MPPI claims met in full, there is a very clear level of protection available against the risk of a missed mortgage payment, cited by four out of five borrowers arrears as the cause of their difficulties.

To make life easier for you and your customer, Paymentshield's MPPI awareness campaign aims to give you the tools and information you may need to sell MPPI in a FSA regulated environment, helping you to drive up sales.

Included in the campaign is a sales pack containing a teaser leaflet, poster, commission document and sales aide.

You can also download our MPPI PowerPoint presentation which you can present to your customers, in order to provide information on our MPPI products.

  1. Moneyfacts press release, 01/02/06
  2. Council of Mortgage Lenders press release, 03/02/06

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