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Need for mortgage payment cover is stressed by lenders

The take-up of mortgage payment protection insurance is rising slightly

but is nowhere near the levels it needs to be, says the CML.

It says the numbers buying MPPI is moving up slowly, with 17 per cent of

people with a mortgage taking out the policies in 1999 compared with 16.6

per cent in 1998. But it says many more borrowers should have the cover and

it estimates that nearly 50 per cent of all borrowers need a protection

policy.

According to CML research, borrowers in lower earnings&#39 brackets are less

likely to have insurance.

The CML and the ABI say they are committed to pressing for a greater

take-up of MPPI but have no plans for educational campaigns to consumers or

intermediaries. The CML says the development of a baseline product launched

last year is the basis for its plan to get the message across.

Deputy director general Peter Williams says: “Although the outlook for the

economy is generally good, it is important for borrowers to think carefully

about the need to protect themselves from the impact of accidents, sickness

or unemployment by taking out MPPI.”

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