View more on these topics

Columbus Direct moves into MPI

Columbus Direct is launching its own MPI product in a bid to bring equality back to the market.

A report released by Columbus today says a total £471m a year is being wasted by homeowners taking out protection direct from their mortgage lender.

It says the average homeowner in the UK is paying £689 a year per MPI policy when they could find cover for £400 if they shop around.

Columbus product director Rob Thomas says: “This is a bank robbery that’s hitting everyone. It’s a natural thought to turn to your bank or lender when looking at this kind of insurance but, at the same time, you’d expect them to be looking to provide you with a good deal.

“So, we’ve launched our own payment protection product to bring some equality to the market.

The study found Abbey to be the most expensive with an MPI annual premium of £763, closely followed by Woolwich on £714. Columbus’ new product bares a monthly premium of £36, or an annual premium of £432.

Recommended

Directors’ duties

The initial cause of the credit crunch was the collapse of the US sub-prime market and its knock-on effect has brought an end to cheap and available credit in the UK and raised the spectre of recession.

Fortis ejects chief executive

Fortis chief executive Jean-Paul Votron has been ousted from the Belgian bank. A statement said the board of directors of Fortis, along with Votron, have decided to terminate his contract “by mutual agreement” and in the interest of the group.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment