With redundancies and repossessions soaring in Britain, Legal and General (L&G) has raised the cost of its mortgage payment protection insurance (MPPI) .
The cost of its MPPI cover has been increased by as much as 39 per cent, with the average premium up by 20 per cent. This action will affect around 49,000 of L&G's policyholders. However, a spokeswoman for the firm said that some policyholders would only see a five per cent hike in their premiums, as the increases were dependent on the type of policy and the length of time it had been held.
She said: "We've done a review of our pricing across all customers and distribution channels as we felt we needed to review our rates so they were reflective of the changing market conditions and with what our competitors have done."
The Royal Institution of Chartered Surveyors (Rics) believes that the total number of homes repossessed during 2009 could be 50,000.




