Sales of mortgage payment protection insurance (MPPI) are continuing to increase.
According to the CML more borrowers are using insurance to protect their mortgage payments in the event of accident sickness and unemployment with 31.7% of new mortgages now being advanced with MPPI.
This shows some improvement on the latter half of 1999 when 28% of new loans were sold with MPPI alongside.
While uptake is on the increase, there is still considerable scope for growth. According to the CML 50% of borrowers have a need for MPPI. Currently only 2.2 million borrowers, 19.6% of the UK total, have MPPI. This is an increase of 2% on the past six months.