Abbey is offering customers three months’ free mortgage payment protection cover for all new applicants.
Homeowners will pay nothing for this insurance cover for three months from September 5 until the end of the year.
Abbey says homeowners in the UK are leaving themselves vulnerable regarding mortgage payments, with half of UK adults admitting they could not maintain current lifestyles beyond a month or two if their work circumstances changed.
In spite of this, only 20 per cent has MPPI or ASU cover in place.
Abbey head of insurance marketing Lloyd Wilson says: “At a time when people may be thinking about their mortgage options because of the recent rate cuts, they should also give some thought to protecting themselves against any unforeseen changes in their lives.”