Rising unemployment means companies offering mortgage payment protection
insurance have increased their prices sharply during the recession to
account for a greater number of claims.
It means the average monthly premium for those looking to buy a new policy has
jumped from £12 to almost £22 in just over a year, or an annual increase of
£120.
It comes after the City regulator the Financial Services Authority announced
that providers have agreed to pay back £60 million to existing MPPI holders
who have suffered any increases in premiums since the beginning of the year.
It said 2.1 customers have the polices, of which half have seen price rises
since the beginning of the year.
Rising unemployment has made MPPI …
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