Released on: August 13, 2008, 6:20 am

Press Release Author: British Insurance

Industry: Financial

Press Release Summary: If the number of families losing their homes to repossession
is to slow down this year, lenders must reduce the cost of their Mortgage Payment
Protection Insurance and ensure more customers have that financial safety net,
should accident, sickness or unemployment occur, warns Simon Burgess from
independent provider, British Insurance.

Press Release Body: If the number of families losing their homes to repossession is
to slow down this year, lenders must reduce the cost of their Mortgage Payment
Protection Insurance and ensure more customers have that financial safety net,
should accident, sickness or unemployment occur, warns Simon Burgess from
independent provider, British Insurance.

His call is in response to predictions from the Council of Mortgage Lenders that
45,000 homes will be repossessed in 2008. Last week the CML announced there were
18,900 repossessions in the six months up to June this year, up from 12,800 in the
same period last year.

The number of mortgage holders with arrears of three months of more up to June 08
was 155,600, up by nearly a third on the 07 figure of 120,800. It is this steep
rise that has yet again, prompted Burgess to urge lenders to cut the profits they
make on PPI policies and do something tangible to help protect customers' homes.

He comments: "Lenders have been lambasted from all sides, the Financial Services
Authority has accused them of treating customers unfairly and not helping people
through their difficulties and the Citizens Advice Bureau accused them of aggressive
behaviour and using court action as a first rather than last resort. Lenders cry
foul and say they're doing all they can to help customers but actions speak louder
than words - they've reduced their fixed rate mortgage deals, they're squeezing more
money out of customers and are using 'bully boy' tactics on those who are
struggling.

"If lenders had provided more affordable mortgage PPI policies that match my
prices, I suspect more people would be able to keep their homes. Although not all
those struggling to make repayments have lost an income due to redundancy - it is a
key factor. Homeowners who lose their wage could wait up to nine months for any
Government help in meeting their mortgage payments, as support has been delayed
from six months. If they had PPI, they would receive back to day one payments and
have their mortgage repayments met for up to a year."

Burgess fears the CML repossession statistic is conservative, but if correct,
calculates that over 120 families a day will lose their homes. He concludes: "I
worry far more families than this will be affected which is why lenders must act now
and stop offering cover that is at least four times more expensive than mine.

"This cover won't solve everyone's financial problems, but it will at least help
those who do face the threat of redundancy. Lenders have a duty of care to make
this insurance affordable and easily accessible."

British Insurance's cover starts at £1.60 per £100 per month and further information
on Mortgage Payment Protection Insurance can be found at www.britishinsurance.com

Web Site: https://www.britishinsurance.com/

Contact Details: British Insurance
PO Box 6164
Braintree
CM77 7ZW
Telephone: 08450 175 178
Fax: 08450 175 065