britishinsurance.com reveals support of OFT findings

Amanda Jarvis

January 24, 2006

In support, britishinsurance.com has launched a new low-cost mortgage payment protection insurance product.

It offers mortgage payment protection insurance premiums at 68% of the average price charged by the top 10 lenders and is around 50% less than the most expensive lender.

Unacceptable price variations and restrictive cover have been commonplace over the years. Accordingly to Graeme Trudgill of the British Insurance Brokers’ Association, this new policy is not only ‘excellent news’ for the consumer, but is in a different league when it comes to quality and flexibility.

Advantages include:
Tax-free claims benefits are payable from day one – instead of being subject to the usually 60 day excess period
Fully portable between lenders – enabling those with pre-existing medical conditions to change to a cheaper mortgage deal if they wish
Unemployment only or disability only cover available at a reduced cost
Three months free cover to all policyholders

Simon Burgess, Managing Director of britishinsurance.com said “Our research shows that consumers insuring an average monthly mortgage repayment of £604 could save some £3316 over the lifetime of a 25 year mortgage.  Our figures clearly evidence that the most expensive lender is profiteering by £6795 and even the cheapest results in consumers over-spending by £1722. 

“Our option to purchase separate disability and unemployment cover will greatly help the self-employed and those in employer-sponsored sick-pay schemes or with pre-existing medical conditions,” he added.

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