Halifax has announced it is no longer offering mortgage payment protection insurance through intermediaries. The provider, now part of the Lloyds Banking Group, said its decision reflected similar changes made by its competitors.
A statement issued by the Halifax said: “The majority of the MPPI policies we sell through our retail network are to existing mortgage customers. This means that we are able to offer competitive rates and premiums, which are fairly priced according to individual risk.
“Customers who wish to purchase MPPI can do so through our network of branches.”
But Sara-Ann Burgess, managing director of PPI specialist Burgesses, said: “This proves yet again that large institutions are not interested in the financial well-being of their customers. With rising unemployment, access to PPI policies that pay a monthly income if redundancy occurs is vital.
“It is because unemployment is rising that providers are beginning to turn their back on customers – they do not want to have to deal with high volumes of claims. And once one provider pulls cover, others will follow.
“Providers should be making PPI as widely available as possible, ensuring more people have a mechanism in place to pay their monthly bills if they lose their job.”
Alan Lakey, partner of Hemel Hempstead-based IFA Highclere Financial Services, said: “A number of companies have pulled out of offering redundancy cover and a number of those still in the market are cherry-picking customers.
“This is not good for clients or advisers. It is like the old saying about bankers – they give you an umbrella when the sun is out and take it away when it starts raining.”
Source: FT Adviser
Huntswood