Paymentshield has relaunched its mortgage payment protection insurance product, FreeStart, to include enhancements benefiting both the policyholder and broker.
The revamped plan offers enhanced rates, easier to understand terms and conditions and a simplified application process.
The plan, underwritten by Hamilton Insurance and fully ABI/CML-compliant, now includes a choice of free cover options, no initial exclusion period, day one cover and waiver of premium. New mortgage borrowers can elect to have six months’ free cover at the start of the policy or three months’ free cover plus 25% additional monthly benefit free of charge for the full term of the policy.
Existing borrowers are being offered three months’ free cover at commencement plus the 25% additional monthly benefit throughout the term.
Brokers receive commission of 25% upon completion which can be indemnified if required. It is payable for the full term, even during the initial free period.
The plan allows borrowers to mix-and-match protection, offering separate unemployment and disability cover or a combination of the two.
l A survey conducted by the Observer reveals a wide discrepancy between premiums for MPPI. It detailed the offerings of the top 10 lenders – the most expensive was Cheltenham & Gloucester, which cost 7.25% of the monthly repayment, compared with 5.13% from NatWest.