There has been an encouraging increase in the take-up of mortgage payment protection insurance (MPPI). According to the Council of Mortgage Lenders (CML) and the Association of British Insurers (ABI), 36% of mortgages taken out in the last six months of 2001 were protected, compared with 32% of policies in the first half of the year.
The figures mean 22.5% of all mortgages in the UK are now protected by MPPI. The figures are an improvement since the Sustainable Homeowners Initiative was launched by lenders, insurers and the Government in 1999, to reduce the volume of repossessions.
Peter Williams, deputy director general of the CML, said: ‘Research shows the safety net for homebuyers has been weakened by diminished State support. If the initiative is to achieve the goal of making home ownership truly sustainable, the Government needs to play a greater role.’