Mortgage borrowers who purchase payment protection through a broker can save up to £2,300 over the lifetime of a 25-year loan.
Research by Sussex-based insurer Berkeley Alexander has revealed that substantial savings are available if borrowers use brokers to shop around.
Berkeley Alexander found the price of MPPI cover can vary widely, from around £6 per £100 of borrowing to as low as £4.45p in £100.
Berkeley Alexander claims the lowest rate applies to its latest product – Safetyfirst – which pays brokers a commission of 25%.
Safetyfirst is underwritten at Lloyd's and offers benefits payable for up to 12 months after waiting periods of either 30 or 60 days.
The insurer calculates that a saving of £2,300 is available to borrowers who choose the cheapest form of MPPI cover.
Ted York, a partner in Berkeley Alexander, said: “These substantial savings clearly demonstrate an opportunity for brokers to put an element of best advice back into the sale of MPPI and claim their share of annual premiums in excess of £100m.”