Technology PR:
Mortgage borrowers are wasting 480 million a year on overpriced Mortgage Payment Protection Insurance (MPPI) according to Burgesses.com who say that a staggering 90% of mortgage borrowers purchase cover from their lenders instead of shopping around for a better deal. In fact, even in the first year alone the average mortgage borrower can make substantial savings by switching to an independent provider.
Commenting upon its research, Burgesses.com Managing Director, Sara-Ann Burgess says, Loyal consumers are paying the price of apathy and are paying hundreds of thousands of pounds over the odds for cover which is available from independent providers for a significantly lower price.
The cost of cover varies dramatically. Cheltenham & Gloucester charges 7.70 per 100 of cover, whereas the Alliance & Leicester rate is 5.45. However, independent providers such as Britishinsurance.com offers cover for only 3.95 plus three months free cover.
Sara-Ann Burgess continues, Just because cover is more expensive doesnt mean that it is better. In fact, its all obtained from the same source, the only difference in 99% of cases is how much commission goes into the lenders pocket. The vast majority of the major lenders retain at least 70% of the premium in commission.
The UK economy is growing at a sluggish 1.7%, the slowest growth for a decade. Accordingly, most mortgage borrowers must now assess their need for insurance. They must not however be victims of inertia and must shop around for a better deal.
The cost of Mortgage Payment Protection Insurance for the UKs top ten providers is detailed below:
Cost per 100 of Full ASU cover
Cheltenham & Gloucester 7.70
Abbey National 6.04
Barclays 5.95
Woolwich 5.95
Halifax 5.95
Northern Rock 5.50
Alliance & Leicester 5.45
NatWest 5.12
Nationwide BS 4.94
Bradford & Bingley 4.90
Average Cost 5.75
This compares with the cost from Britishinsurance.com of only 3.95
About Burgesses
Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.
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