Abstract: Risk has come increasingly to characterise homeownership, and the provision of risk mitigation has become more important, particularly in terms of ensuring that borrowers can maintain their stream of mortgage payments. The state often provides some support to borrowers without income but this article considers the contribution of private mortgage payment protection insurance (MPPI) in enabling borrowers to cover key risks. The United Kingdom, the United States, and Australia are among those countries with developed MPPI markets. Nevertheless, take-up can be low and the reasons for this are discussed as are the measures of effectiveness. It is suggested that MPPI cannot cover all risks, operates with a number of exclusions, can be costly, and does not always preclude mortgage arrears. As risk grows, the article suggests that there is a need to develop more effective safety-net systems.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
Cited By Count: 2
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