Mortgage insurance premiums skyrocket

Millions of people who bought insurance to pay their mortgage if they become ill or lose their jobs, are facing rises of up to 40 per cent in their monthly premiums. Insurance companies are blaming the increase on a rising number of claims. Figures from the Association of British Insurers show a 200 per cent increase in claims on mortgage payment protection insurance during the past year, and applications for policies are ‘soaring’.