FSA warns of rising cost of mortgage insurance

The Financial Services Authority has warned a number of insurers have recently increased the premium charged for mortgage payment protection insurance or reduced the level of protection offered, at a time of rising unemployment. The City watchdog said some insurers have increased premiums by between 30 and 50 per cent, while others have cut the maximum monthly payout and increased the waiting period before people can claim from 60 to 90 days.