Lloyd's broker Berkeley Alexander has joined forces with insurance administrator Paymentshield of Freestart to launch a Mortgage Payment Protection Insurance.
It provides a range of benefits to both brokers and policyholders.
The policy is available to both new and existing mortgage borrowers and is compliant with ABI/CML baseline standards. Consumers are offered immediate free cover and brokers are paid substantial commissions even during the free period.
As part of this deal the broker is offered a commission of 25% payable immediately upon completion of the policy and can be indemnified if required.
In addition, commission is payable for the full term of the policy, including the free cover period. Furthermore the application procedure is non age, gender or occupation-rated.
What the policyholder gets: no initial exclusion period; back-to-day-one cover; competitive premiums after the free cover period; a choice of free cover options; premium waiver during a claim and full portability between lenders.
Ted York, managing partner of Berkeley Alexander, said: "Freestart is a genuine development in the field of MPPI, which will increase brokers' profits, reward individual advisers and give policy holders extra security without set-up costs to anyone."
To the broker
1. Commission of 25% is payable immediately upon completion of the policy and can be indemnified if required.
2. Commission is payable for the full term of the policy including the free cover period.
3. Simple applicatoipn procedure (not age-, gender- or occupation-rated).
To the policyholder
1. No initial exclusion period
2. Back-to-day-one cover
3. Competitive premiums after the free cover period.
4. A choice of free cover options.
5. Premium waiver during a claim.
6. Full portability between lenders.