UK Landlord Forum / Life

An insurance company is about to launch a product which will pay out if your mortgage repayments rise as a result of base rate hikes. It's called MarketGuard, it's the first product of its kind, and it's due to launch in a couple of months.

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MARKETGUARD TO LAUNCH FIRST INTEREST RATE INSURANCE PRODUCT FOLLOWING HOUSING FINANCE REVIEW ANNOUNCED TODAY

...Following engagement with market participants and the FSA, the Government believes that it is possible for companies to bring stand-alone interest rate protection products to the market within the existing FSA definition of insurance and be classified as insurance for tax purposes. The Government will continue to engage with firms seeking to introduce such products to the market...

Insurer MarketGuard welcomes this news and today announces its intention to launch the first interest rate insurance product which covers individuals against increases in their mortgage payments as a result of rises in the Bank of England Base Rate, by May/ June this year.

Chris Taylor, CEO of MarketGuard commented, "We have worked hard with Treasury to encourage them to consider the merits of interest rate insurance. We estimate that there are currently approaching 7 million* variable rate mortgages in the UK and our research shows that there is a desire amongst this group to have available, a product such as stand alone interest rate insurance, which will give them payment stability without tying them to lenders or products."

Basically, an insurance company is about to launch a product which will pay out if your mortgage repayments rise as a result of base rate inceases. The product is called "MarketGuard", it's the first product of its kind, and it's due to launch in a couple of months.

The details aren't clear as of yet, like how much the product will cost, and how long the policy will last for i.e do we have to renew the policy yearly? Regardless, interesting.

Source: Article here