Specialist broker Burgesses introduces a montly lona protection policy.
The Association of British Insurers says loan protection sales are running at a rate of over 1,000 an hour and lenders are raking in an astonishing 8 billion a year in commission.
Burgesses managing director Simon Burgess says: “Increasing borrowers debts with front loaded and excessively priced loan protection is profiteering which must be stopped. We manage to be competitive by taking lower commissions and enjoying vastly reduced operating costs”.
Moneyfacts spoksman Andrew Haggar: “This is good news for consumers who will now be able to arrange alternative cover and save themselves a great deal of money as shown in the examples below. The advantage of Burgesses cover is that you pay your premiums monthly rather than being forced to borrow the total premium up front and then being charged interest on it for the life of your loan.”