Paymentshield has re-packaged its Freestart mortgage payment protection insurance policy.

Freestart provides a range of free cover incentives for both policyholders and brokers.

Cover commences on the completion date of the mortgage, and new borrowers can expect six months' free cover and 25% extra free benefit for the term of the policy.

The policy is fully portable between lenders and premiums will be waived during a claim.

Paymentshield claims its premiums are competitive after the free cover period, for example unemployment and disability cover is £26.25 per month including IPT for a £500 per month mortgage.

The policy exceeds the Association of British Insurers'/Council of Mortgage Lenders' baseline in that it offers back-to-day-one cover – rather than a 60-day excess. And it has no initial exclusion period for new borrowers.

Brokers can earn a commission of 25% for the full term of the MPPI cover including the free period.

Paymentshield chairman Rick Riding said: “Freestart achieves our objective of providing mortgage borrowers with comprehensive MPPI cover at affordable premium rates, while at the same time encouraging brokers to promote the development and distribution of this cover.”