Mortgage payment protection insurance (MPPI) is now more popular, with a higher claims success rate and more business transacted via intermediaries than ever before, according to the latest findings from the Council of Mortgage Lenders (CML) and the Association of British Insurers (ABI).
A total of 32% of borrowers who took out a mortgage in the first half of 2001 purchased MPPI at the same time, meaning there are now over two million policyholders in the UK. Almost a quarter of these polices were arranged through intermediaries. In addition, claims acceptance was found to be up 6% from two years ago, standing at 88%.
The CML and ABI put the positive results down to their new joint standards for MPPI, launched in July 1999.
Michael Coogan, director general of the CML, said that with an economic slowdown under way, borrowers need to think seriously about recession-proofing their mortgage.
‘Sustainable home ownership is about more than just insurance ‘ the economic environment, lending and arrears policies, and consumer behaviour all have a part to play,’ he said.