Mortgage borrowers are wasting £480 million a year on overpriced Mortgage Insurance
In fact in the first year alone the average mortgage borrower can save over £219 by switching to an independent provider
Commenting upon its research, Goodfellows Managing Director, Simon Burgess says, “Loyal consumers are paying the price of apathy and are paying hundreds of thousands of pounds over the odds for cover which is available from independent providers for a significantly lower price.”
The cost of cover varies dramatically. Cheltenham & Gloucester charges £7.70 per £100 of cover, whereas the Alliance & Leicester rate is £5.45. However, Goodfellows offers cover for only £3.95 plus three months free cover.
Simon Burgess continues, “Just because cover is more expensive doesn't mean that it is better. In fact we all get it from the same source the only difference is 99% of cases is how much commission goes into the lenders pocket. In Goodfellows case it is 20%, whereas the vast majority of the major lenders retain at least 70% of the premium in commission.”
The UK economy is growing at a sluggish 1.7%, the slowest growth for a decade. Accordingly, most mortgage borrowers must now assess their need for insurance. They must not however be victims of inertia and must shop around for a better deal.