The Council of Mortgage Lenders (CML) has expressed surprise that the office of Fair Trading (OFT) has included mortgage payment protection insurance (MPPI) in its second phase report on the industry.
PPI was branded unclear and misleading by the OFT in its report and the government body stated it would consider referring the entire market to the Competition Commission for review.
However, the CML has sought to differentiate MPPI from loans PPI, which it says is far more obviously mis-sold or badly advised and is of far less importance, especially as missed mortgage payments can result in the loss of your home.
"It is surprising that the OFT has decided to include prime MPPI in its proposed referral to the Competition Commission, given that its market study points out differences in terms of greater access to stand-alone cover than in other PPI sectors," said Michael Coogan, the director general of the CML.
"The work we have done on prime mortgage payment protection insurance clearly demonstrates that it is possible to create a credible product with a compliant sales process.
"We hope that mortgage borrowers who need MPPI are not put off taking it because of more general concerns about the wider PPI sector."To read more about mortgage protection insurance, click here.
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