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Berkeley Alexander simplifies cover for mortgage payments

Protection provider Berkeley Alexander is offering a new mortgage payment protection product which it claims has a range of incentives for brokers and policyholders such as free cover and concise documentation.

It says the application process for FreeSafe is simple as no medical is required and cover is available irrespective of gender, occupation or employment status as it includes contract workers and the self-employed.

Benefits for policyholders include no initial exclusion period, as the cover starts on the day the mortgage completes, premium waiver during a claim and freedom to move between lenders while keeping the protection.

It claims premiums are competitive with full accident, sickness and unemployment cover available for £4.75 per £100, compared with an ABI survey average of £5.54.

Brokers are paid commission of 25 per cent of the premium immediately after completion of the policy and the commission can be taken either monthly or by annual indemnity.

This commission is paid for the full term of the policy, including a free cover period of six months available for new borrowers and three months for existing ones.

Managing partner Ted York says: “This is clearly a winwin situation for both consumer and broker and fulfils the Government&#39s manifesto commitment of improving the sustainability of homeownership through better mortgage protection.”

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