01-10-2007
Mortgage borrowers felt pressured into buying insurance
News from Simply Business - independent providers of landlord insurance, buy-to-let & commercial mortgages, business insurance and business finance.
A number of new mortgage borrowers have felt under pressure to purchase additional insurance products over the course of this year, a survey has revealed.
According to the results of a study by market research firm Capital Blue, in excess of 30 per cent of new borrowers felt under pressure to purchase additional insurance products related to their mortgage borrowing.
Indeed, within the context of payment protection insurance (PPI), 11 per cent of respondents confirmed they felt pressure.
"[PPI] protects a borrower's ability to maintain repayments and helps them avoid getting into debt should they be unable to keep up their repayments due to accident, sickness or unemployment," said the Association of British Insurers.
"Cover is often purchased at the time [of] the finance arrangement," it added.
Additionally, 13 per cent of those responding to the study revealed that pressure had been felt over the possible purchase of home contents insurance, while 14 per cent felt the same tactics were being used for the sale of life assurance products.
The study was conducted over a period of two years.
Landlords who own buy-to-let properties should ensure they have appropriate landlord insurance.
Find out more now ...