Forum Brief: Mortgage insurance

Latest figures released jointly by the Association of British Insurers and Council of Mortgage Lenders have shown an increase in the take-up of mortgage payment protection insurance.

Thirty six per cent of mortgages taken out in the last six months of 2001 were protected by policies, compared with 32 per cent of mortgages in the first half of the year.

Forum Response: Association of British Insurers

Mary Francis, director general of the Association of British Insurers, told ePolitix.com: "The increase is steady and encouraging. A house purchase is the single biggest investment most people are ever going to make and we are concerned that too few people are taking appropriate steps to protect the roof over their head.

"It is normal for people to consider protecting their loved ones and their homes if they die but less common that people consider the consequences of not being able to work. This is likely to be because there are still far too many people who mistakenly believe that the government will step in and help pay the mortgage if the worst were to happen."