A mortgage payment protection policy which provides cover against the risks of unemployment and disability of up to £1,500 per month, or 65% of gross earnings, (whichever is the less) was launched this week.
The firm behind the product, Goodfellows, claims it will "revolutionise the UK mortgage market" with the inclusion of a number of industry firsts.
These include three months' free cover to all mortgage borrowers; free 25% additional cover for the policy's lifetime and free policy transfer from existing more expensive policies.
Called Securityfirst, it is available to both new and existing mortgage borrowers aged between 18 and 65 irrespective of occupation or employment status. The policy can be taken out by people who work part-time, on contract and or are self-employed.
Goodfellows also accused traditional providers like banks and building societies of being "unscrupulous" in their dealings with mortgage customers, claiming its product was half the cost of what others in the industry were charging.
"For far too long banks, building societies and unscrupulous intermediaries have been ripping off mortgage borrowers," said Goodfellows' managing partner Simon Burgess.
"With Securityfirst's free policy transfer and wide acceptance criteria, virtually all UK mortgage borrowers can now obtain access to the best contract of its kind on the market.
Cover for a mortgage of £500 would cost policyholders £22 a month (the first three months are free) or £14 a month for unemployment only or disability only.
All claims are payable for up to 12 months, excess of only 30 days with no limitation on the number of separate claims that can be made.
There is no initial exclusion period for new mortgage borrowers while existing borrowers will have to wait 90 days in respect of unemployment.
