Portability to Escape Protection Trap, Says Burgesses.com

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Thousands of mortgage borrowers who suffer from pre-existing medical conditions have found they are effectively trapped into unsuitable - and often very expensive - payment protection policies.

Sara-Ann Burgess, MD Burgesses

It's a shocking and outrageous reality that anyone with a pre-existing condition is seriously prejudiced because lenders' policies are non-transferable between mortgage providers. I believe the only reason for this is that the lenders want to tie their most vulnerable borrowers into financial arrangements that are often poor value for money.

Thousands of mortgage borrowers who suffer from pre-existing medical conditions have found they are effectively trapped into unsuitable - and often very expensive - payment protection policies.

New research conducted this week by Burgesses.com has revealed that these unsuspecting borrowers are tied into deals because mortgage lenders' mortgage payment protection insurance (MPPI) policies are non-transferable between lenders.

Alarmingly, these policies - which are supposed to pay out in the event of accident, sickness or unemployment - have built-in clauses that will exclude medical conditions that exist or have occurred within 12 months of the start date.

Sara-Ann Burgess, spokeswoman for Burgesses.com says, "It's a shocking and outrageous reality that anyone with a pre-existing condition is seriously prejudiced because lenders' policies are non-transferable between mortgage providers. I believe the only reason for this is that the lenders want to tie their most vulnerable borrowers into financial arrangements that are often poor value for money."

An alternative, and far more beneficial way of buying the cover, is to go through a specialist broker, because these do not prejudice policyholders who have developed a medical condition but may wish to change mortgage providers.

Burgess continues "Pre-existing condition exclusions are wholly unsatisfactory because you are effectively underwritten at the point of claim and having a new exclusion each time you change your mortgage exacerbates this further. The key is to make sure you buy a portable policy at the outset."

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