Figures released by the Communities and Local Government (CLG) shows that the north-south divide doesn’t just apply to house prices, but also Mortgage Payment Protection Insurance (MPPI).
MPPI premiums are determined by loan size, and independent MPPI provider British Insurance says this is why home owner should shop around for cover.
British Insurance’s MD Simon Burgess explains: “The home insurance premiums for two terraced houses would not traditionally, vary that much, if say one was in the south east and the other in the north west.
“However, when it comes to mortgage protection, consumers in London and the south east could end up paying double that of other UK areas because of escalating house prices.
“Consumers are already having to dig deep financially to get on the housing ladder, so it’s a bit of a whammy when they have to fork out more for mortgage payment protection insurance as well.”
British Insurance compared MPPI premiums of 10 of the UK’s top lenders and found that on average, consumers were spending two and a half times more than they needed to on this insurance with some spending nearly three times as much which equates to £10,000 more than is necessary over 25 years.
Mr Burgess continued: “Given these figures are based on a £100,000 mortgage, which in some areas wouldn’t meet half the cost of a home, I urge homeowners to review their payment protection premiums.
“Shop around; superior insurance with better rates is available.”
Find out more about Mortgage Payment Protection