Save Thousands on Mortgage Payment Protection Insurance

Homeowners can save themselves thousands of pounds on their mortgage payment protection insurance by simply shopping around, experts say.

Millions of homebuyers are too quick to sign up to the policy offered to them by their mortgage lender, according to financial comparison site Moneyfacts.co.uk.

Rachel McKay, mortgage analyst at moneyfacts.co.uk, said independent sources offering a cheaper and wider range of product options can save homeowners thousands of pounds.

She said: "By the time they've been through their mortgage application process - which can be a lengthy ordeal, following increased regulatory requirements - clients may be tempted to sign up to the lender's own policy, just to save time.

"Consumers need to be made aware that shopping around for mortgage payment protection insurance cover, either direct or via their IFA, is an avenue that is well worth exploring. So by spending a little time at the mortgage application stage, they can save themselves a significant sum in the longer term."

Research from British Insurance.com, estimates people can save themselves close to a third of the cost if they take out independent policies rather than those offered by the top ten lenders.

"For anyone under the age of 40, the savings are pretty impressive, especially when you multiply the monthly saving by a factor of say 240 or 300 for mortgage terms of 20 or 25 years respectively," Ms McKay concluded.