For the best mortgage payment insurance avoid high street lenders

While the high street lender might have got you an excellent deal when it came to your mortgage this doesn’t necessarily mean that they can do the same when it comes to taking out mortgage payment insurance with which to protect that mortgage. The high street lender can secure you the best deal for a mortgage because it’s what they specialise in, however high street lenders only sell mortgage protection as a sideline alongside their mortgage and as such know very little about the product other than it makes them huge profits each year.

Sadly these huge profits are put ahead of the consumers best interests and has led to the mis-selling of policies as the ongoing investigation by the Financial Services Authority (FSA) has recently shown when the latest to receive a fine was a mortgage company. The investigation stems back to 2005 after a super complaint was made to the Office of Fair Trading (OFT) by the Citizens Advice , following this the Financial Services Authority (FSA) started its investigation and fined several high street names before referring the sector to the Competition Commission . The Competition Commission conducts in-depth reviews and regulates major regulated industries and they expect to reach their conclusion by Feb 2009, along with Financial Services keeping their own eye on the sector in the meantime.

The mis-selling of policies was wide spread and included over charging on the premiums, a lack of information given to the consumer and putting profits ahead of the consumer by not ensuring the consumer realised there were exclusions which could and did stop them from claiming successfully. Some of the most common included selling policies to those who were retired, only in part time work, self-employed or suffering from a pre-existing medical condition at the time of taking out the policy.

Mortgage payment insurance can be a valuable asset to have in your corner as it could give you a monthly income which would be tax free after you have been out of work for 30 days or more and would be backdated to day one and then continue to pay out for up to 12 month and with some providers this is extended to 24 months. Policies can be taken just to cover accident and sickness only, unemployment only or for accident, sickness and unemployment. The cost of the premiums will of course depend on the level of cover that you require for your particular circumstances and when comparing quotes this needs to be taken into account. The standalone provider will usually make their quotes quite clear and usually quote for every

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