Borrowers are advised to avoid the protection racket
In fact, in the first year alone the average mortgage borrower can save over £219 by switching cover to an independent provider, according to Rhino.
Commenting upon this research, Rhino Insurance’s director, Andrew Areoff, said, “Lenders are profiteering at the expense of their borrowers. We all obtain this cover from the same source, the only difference is that we, together with other independent brokers, retain less commission and so are able to purchase more benefits for our clients whilst maintaining comparity of cost.”
Mortgage Payment Protection Insurance is just one of several insurance policies sold by lenders which analysts say can be overpriced. The general advice is shop around for all your insurance needs.