New and existing customer face increase averaging 20%

Legal & General has raised the cost of mortgage payment protection insurance (MPPI), covering new and existing customers, by as much as 39% the Times reports.

L&G has about 50,000 MPPI customers and has raised the cost of cover by up to 39%. The average premium will increase by about 20%, L&G said.

Earlier this year, Pinnacle and Hitachi raised the cost of insurance by 40%, while Norwich Union increased premiums by 30% in January and Paymentshield raised them by 20%.

MPPI claims soared 200% last year, according to the Association of British Insurers.