loose change

What they mean when they say ... Mortgage protection plans;

Friday 30 June 1995 18:02 EDT
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What they mean when they say ... Mortgage protection plans

Confusion still surrounds MPPs or mortgage protection plans and MIGs or mortgage indemnity guarantees. The former are voluntary policies taken out to pay the mortgage interest if borrowers fall ill or lose their jobs and cannot keep up the payments. Some societies used to insist borrowers took out MPPs as a condition of getting cheap fixed-rate mortgages, but that has largely lapsed. Lenders insist borrowers take out MIGs if they borrow more than 75 per cent of the property's value. Many borrowers cannot see why, if they pay the premiums, the lender gets the insurance money when they fail to maintain repayments and the lender repossesses.

Getting a good deal

from stockbrokers

Skipton Share Dealing Service charges the lowest commission, just pounds 9 on a pounds 5,000 share deal, according to a new guide to choosing a stockbroker in the Investor's Chronicle. Other low-cost dealers include National & Provincial, City Deal Services and Sharelink. Investors looking for a guide to choosing a stockbroker can ring the IC free hotline on 0990 209913. The first 1,000 to call will get a free copy.

The mix-and-match

way with mortgages

The UK's seventh largest building society, the Bradford & Bingley, is offering a free booklet on different types of mortgages and related insurance products to callers on 0800 252993. It covers endowment and repayment mortgages with a table of comparisons, and mix-and-match mortgages designed to meet changing needs, as well as cover against redundancy and sickness.

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