A new general insurance product that aims to protect homeowners and landlords from the impact of interest rate hikes has been launched for the broker market.
Mortgage Rate Cover is designed to help brokers protect homeowner, landlord and property investor clients against rising mortgage repayments, following increases to the Bank of England base rate or Libor.
It doesn't require any changes to existing mortgage and can therefore be used to protect clients irrespective of their circumstances, said Andy Shaw, director of Mortgage Rate Cover.
"We are now seeing more and more reports in the press of when interest rates will rise and we know it is only a matter of time.
"As rate rises become imminent, our prices will have to reflect this. There has never been a better time to purchase this product."
Shaw quoted a recent poll for ITV News that showed that nearly four out of 10 mortgage holders would be forced to make cuts if mortgage rates rise.
"With reports now being made that interest rates are likely to rise quicker than originally anticipated and predictions from Citi that the base rate will rise by the end of the year, now really is the time to find a solution."
To become a distributor of Mortgage Rate Cover please register online at www.mortgageratecover.com or call 0800 668 1752.
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