MPPI is an optional policy that you can buy with your mortgage. If you don’t wish to take out a policy this will not affect your mortgage application.

XYZ provides an ‘information only’ service for the sale of MPPI policies. This means that, while we have stated which demands and needs the product is designed to meet (including significant exclusions), we haven’t assessed your individual demands and needs to work out which (if any) of the policies we offer would be suitable for your specific circumstances and so are not personally recommending any policy to you. If you buy the policy based on the information we provide, you have fewer rights if the policy turns out to be unsuitable than if you buy after taking financial advice.

or

XYZ firm provides an advised sales service for MPPI. This means we will only recommend a policy after considering your particular demands and needs based on your personal and financial circumstances and only if we feel that a policy is suitable for you. If we don’t have access to a suitable policy, we won’t recommend one at all.

In the case of your [recommended/chosen] policy, payments following a successful claim would start [state period in relation to the insured event – eg three months after redundancy] and last for a maximum of [state maximum period of cover].

If you cancel the policy early you are entitled to the following repayments

• X% of the initial single premium if you cancel within [relevant time period]
• Y% of the initial single premium if you cancel within [relevant time period]
• Nothing if you cancel within [relevant time period]

or

If you cancel the policy early you won’t receive any refund of your premium.

The main exclusions on your [recommended/chosen] policy are listed below.

• Exclusion
• Exclusion
• Exclusion

For full details of these and all other exclusions for this policy, please read [page X of document/booklet name]

You have chosen to add the insurance premium of £X,XXX to your mortgage, which means you will repay this amount, plus interest, over the life of your mortgage.

Based on the current interest rate on your mortgage this means that the total cost of the insurance premium to you will be £Y,YYYY. Because mortgage interest rates can change over time this total amount could rise or fall, unless you are on a fixed rate mortgage for the life of the loan

You have chosen to pay for your cover by monthly premiums. Full details of the cost of these are set out in the ‘Statement of Price’ being sent to you/enclosed.

The Statement of Price outlines all the costs associated with your cover - separated out from the costs of the loan, and including the total interest charged for the PPI over the period of the loan. It is very important that you read and understand this statement and contact us if you’re worried about the cost or don’t understand it.

An overview of the cover you are buying is provided in the policy summary being sent to you/enclosed.  It is very important that you read and understand the policy summary and contact us if you are concerned about any aspect or don’t understand it.

 Once the policy starts, you have a 14 day ‘cooling off period’ in which you can change your mind about taking out this cover. We are sending/have enclosed separate guidance on this.