Product

RateGuard protects monthly loan payments from rising interest rates. Purchased separately it acts as a portable rate cap and can be applied to any Bank of England or LIBOR based personal, residential, buy to let or commercial loan or mortgage.

For those unable or unwilling to remortgage it offers the only available protection from rate rises. For those who can remortgage it offers an alternative that may be more attractive depending on personal circumstances.

Product Features

• No credit check, no arrangement fees
• Automatic claims payments, no customer action required
• Claims paid directly to the customer’s bank account each month
• 12, 18 or 24 month general insurance
• Monthly installments available
• Regulated by the FSC and FSA as general insurance
• All applicable policies covered by the FSCS
• No dual pricing, all policies purchased via MarketGuard online advisor centre
• No claims handling or customer contact post sale

Market Size

• Over 5m residential variable rate mortgage targets
• Estimated 2.5m mortgage holders in negative equity
• Total market GWP > £6bn, Total market commission >£1bn

Risk

Higher mortgage payments could be a catastrophe for many mortgage holders and with interest rates no more predictable than fires or floods the need for protection is the same.

Quotes

Bank of England Governor Mervyn King said “We'll have to be ready to follow the exit route and raise interest rates quickly and sharply as necessary”, House of Lords Economic Cttee, March 24

Bank of England Chief Economist and MPC member Spencer Dale said “the committee adjusted boldly and decisively on the way down... and we will be prepared to respond with equal vigour on the way back up”.