Mortgage protection bills could rise 40%

MORTGAGE holders face hikes of 40% or more in their mortgage protection premiums because so many people are claiming on their policies due to loss of earnings in the recession.

The latest company to confirm it is to raise the premiums is Genworth Financial, which has a 37% share in the mortgage protection market and which underwrites cover sold to many of the country’s top lenders.

In letters sent out by financial institutions through which Genworth Financial offers its products, customers were told the pricing of mortgage protection policies had been developed at a time when unemployment was at historically low levels and was based on the level of forecasted claims at that time.