The AA has launched a mortgage payment protection insurance policy with a no-claims bonus feature.
AA Mortgagecare will meet mortgage repayments in the event of accident, sickness or involuntary unemployment for a premium of £5.75 per £100 cover.
A 5% reduction in premium is available at the end of the first year if no claim has been made and for each year thereafter up to a total of a 25% reduction.
An online calculator and instant quotes are available on the company’s website at www.theaa.co.uk.
Gill Edge, head of retail finance at the AA, said of the policy launch: “People do not think twice about insuring the structure of their building and its contents, but they rarely protect the payment on the most expensive purchase they ever make.
“If misfortune strikes, no one should lose the home they love.”
l The Government’s initiative to increase the uptake of mortgage payment protection insurance (MPPI) appears to be paying off.
According to the ABI and the CML, there was a 9% increase in the number of mortgages taken out with an insurance policy in place over the last six months.
More than two million mortgage borrowers now have MPPI in place, which represents 19% of the market.
In the second half of 1999 there was a 32% increase in the number of borrowers taking out MPPI with their mortgage compared with the first six months of the year.
The Government’s initiative aimed to increase the take-up of products that cover mortgage payments in the event of accident, sickness and unemployment.