Britons Losing Out Over Mortgage Protection Insurance
Article published on 26th May 2008
Leading insurance firm, Columbus Direct, has released the results of its research into insurance lenders and borrowers in the UK. The research, conducted in March this year, suggests that British families maybe paying over-the odds for their mortgage protection insurance to the tune of nearly £500m every year as high-street banks and building societies target them with sky-high rates.
Columbus's report shows that even well-known banks are charging up to twice the necessary amount to cover monthly expenditure. Abbey National was amongst the worst performing, charging just under £65 per month for just £1,000 of insurance cover. The Woolwich and Barclays bank came in a close second, both charging about £60 per month for the same £1,000 cover.
Although some companies offer mortgage protection insurance from as little as £400 annually, the Columbus report estimates that a large number of householders who have taken out insurance with their mortgage lender are instead spending around £689, wasting about £289 per annum on unnecessary expenses. When we look across the whole spectrum of homeowners in the UK who have taken out insurance from their mortgage lenders, this country-wide over payment equates to £471 million over-spend by British citizens, simply because they don't shop around enough before buying insurance, relying instead on the sometimes partisan advice given to them by from their mortgage lender.
The message to take home from this? Shop around for your insurance policies! Don't settle for the advice given to you from one source, especially if that source represents the same company you owe money to in the first place! Always go to an independent advisor before buying insurance and ask for impartial advice.
Please feel free to contact one of our advisor's for friendly free financial advice on 0808 1782 777.
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