Released on: September 4, 2008, 7:42 am

Press Release Author: Sara-Ann Burgess

Industry: Financial

Press Release Summary: Mortgage borrowers are wasting £480 million a year on
overpriced Mortgage Payment Protection Insurance (MPPI) according to Burgesses.com.


Press Release Body: Mortgage borrowers are wasting £480 million a year on overpriced
Mortgage Payment Protection Insurance (MPPI) according to Burgesses.com who say that
a staggering 90% of mortgage borrowers purchase cover from their lenders instead of
shopping around for a better deal. In fact, even in the first year alone the average
mortgage borrower can make substantial savings by switching to an independent
provider.

Commenting upon its research, Burgesses.com Managing Director, Sara-Ann Burgess
says, “Loyal consumers are paying the price of apathy and are paying hundreds of
thousands of pounds over the odds for cover which is available from independent
providers for a significantly lower price.”

The cost of cover varies dramatically. Cheltenham & Gloucester charges £7.70 per
£100 of cover, whereas the Alliance & Leicester rate is £5.45. However, independent
providers such as Britishinsurance.com offers cover for only £3.95 plus three
months’ free cover.

Sara-Ann Burgess continues, “Just because cover is more expensive doesn’t mean that
it is better. In fact, it’s all obtained from the same source, the only difference
in 99% of cases is how much commission goes into the lender’s pocket. The vast
majority of the major lenders retain at least 70% of the premium in commission.”

The UK economy is growing at a sluggish 1.7%, the slowest growth for a decade.
Accordingly, most mortgage borrowers must now assess their need for insurance. They
must not however be victims of inertia and must shop around for a better deal.
The cost of Mortgage Payment Protection Insurance for the UK’s top ten providers is
detailed below:

Cost per £100 of Full ASU cover

Cheltenham & Gloucester £7.70
Abbey National
£6.04
Barclay’s
£5.95
Woolwich
£5.95
Halifax
£5.95
Northern Rock
£5.50
Alliance & Leicester £5.45
NatWest
£5.12
Nationwide BS
£4.94
Bradford & Bingley £4.90
Average Cost
£5.75

This compares with the cost from Britishinsurance.com of only £3.95

Web Site: http://www.burgesses.com/news

Contact Details: Burgesses Limited
PO Box 6164
Braintree
Essex
CM77 7ZW
Sara-Ann Burgess
01371853027