Updated 9:27pm 31 May 2012

Mortgage insurance cuts ‘unfair’

THE City watchdog expressed concerns yesterday that consumers with unemployment insurance are not being treated fairly.

The Financial Services Authority said a number of insurers had increased premiums for mortgage payment protection insurance or reduced the level of cover offered by the product. The changes come at a time when rising unemployment makes it more likely that people will need to claim on the product, which covers mortgage interest payments if holders are unable to work due to an accident or illness, or if they lose their job.

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