UK Mortgage Protection Insurance Does Not Have To Be A "Rip-Off"

Summary: Depending on where you choose to buy the cover, UK mortgage protection insurance does not have to be a big "rip-off". Buying the cover alongside your mortgage with the high street lender is the worst choice you can make when thinking of taking out protection. Choosing to go independently for the cover can save you an enormous amount of the money and an independent specialist provider will give you the advice needed to be able to make an informed decision. Problems began fo...

Depending on where you choose to buy the cover, UK mortgage protection insurance does not have to be a big "rip-off". Buying the cover alongside your mortgage with the high street lender is the worst choice you can make when thinking of taking out protection. Choosing to go independently for the cover can save you an enormous amount of the money and an independent specialist provider will give you the advice needed to be able to make an informed decision. Problems began for the sector in 2005 when the Office of Fair Trading received a super complaint from the Citizens Advice regarding mis-selling of payment protection. Fines were handed out by the Financial Services Authority and the sector was referred to the Competition Commission. Recently the Financial Services Authority revealed that despite them setting out recommendations for selling the cover they have investigated over 4,000 cases of mis-sold protection policies in 2007. Along with this the Competition Commission said that banks are raking in high profits by as much as 80% on selling UK mortgage protection insurance cover and loan protection alongside mortgages, loans and credit cards. However they are not admitting they make around