The insurer’s managing director Simon Burgess is calling for lenders to reduce MPPI rates to help ensure more customers have a financial safety net should an accident, sickness or unemployment occur.
Burgess’ plea comes after the CML predicted 45,000 homes will be repossessed in 2008.
He says: “Lenders have a duty of care to make this insurance affordable and easily accessible. If lenders had provided more affordable MPPI policies that match our prices I suspect more people would be able to keep their homes.”
Burgess is now warning homeowners who lose their wage to be aware of the nine-month waiting period for any Government help in meeting their mortgage payments.
He says: “If they had PPI, they would receive back to day one payments and have their mortgage repayments met for up to a year.”