L&G increase MPPI premiums by 20%

Legal and General has joined numerous other providers and increased its mortgage payment protection insurance premiums by around 20 per cent.

The increases, averaging 20 per cent, are part of L&G’s ongoing review and analysis of the MPPI market.

A L&G spokeswoman says: “It was a result of looking at the current risks with the changes in the current economic situation. We felt, unfortunately, that we had to increase our prices to reflect what else is happening in the market." The premium increase will vary depending on whether the policy includes accident, sickness and unemployment cover, and over what term the policy has been in force.

Michael Cooke, director at leading insurance broker The Insurance Helper comments: "The MPPI marketplace has seen unprecedented turmoil in recent months, and this is yet another example of the rate hikes we've witnessed."

It's not all doom & gloom though, as Mr Cooke continues: "Fortunately for our clients, we continue to have access to some great MPPI products at very good premium rates, with Unemployment cover from £2.50, Accident & Sickness from £1.26, or ASU from just £2.75."

MPPI quotes can be requested on 0845 003 0065 or via the website.