Ppi Price Reduction 'could Reduce Repossessions'
The chances of people having their homes repossessed could be lowered if lenders reduce the price of their mortgage payment protection insurance (PPI), according to one industry figure
Simon Burgess, from independent provider British Insurance, claims the cover provides a safety net for those with home loans should they fall ill, have an accident or become unemployed.
However he claims the policies on offer are too expensive and believes more affordable cover could help people with monetary difficulties keep their homes.
"This cover won't solve everyone's financial problems, but it will at least help those who face the threat of redundancy. Lenders have a duty of care to make this insurance affordable and easily accessible," Mr Burgess fears.
He made the call in response to figures from the Council of Mortgage Lenders that predict up to 45,000 homes will be repossessed this year, an estimation he believes may be conservative.