CUNA Mutual Europe

Birmingham, 5 February 2010

CUNA Mutual Group’s support for the Building Society sector is essential as lending figures continue to fall and lenders restrict new money loans, whilst insurers review their stance and increase premiums to protect themselves.

The economic downturn continues to impact on unemployment levels, and whilst some of the population have made sufficient contingency by purchasing adequate MPPI [Mortgage Payment Protection Insurance] there are a significant proportion that face their worst fears of arrears and possible repossession.

*Building Society lending - £m’s

At CUNA Mutual Group our aim is to make protection affordable and available to all, and protect the entire population.  We know that an increase in UK interest rates could be enough to force people over the edge as budgets are stretched to the limit. Our MPPI product is one of the best value products on offer today, and what’s more our Mutual values ensure we operate in the most ethical way possible.

Seven UK Building Societies have chosen to partner CUNA Mutual Group in the last 12 months alone, and more have indicated that they are going to join us; our reputation is growing as a great business partner that operates on sound ethical Mutual values.

Our products are simple, affordable, and compliant; the automated sales process is very quick; we take care of the protection, as well as taking care of the compliance requirements ensuring that our partners are not exposed to reputational risk.

For information on our MPPI products, our other products or detail on our organisation please call:

 Richard Edwards Affinity Director UK & Ireland
 Ph: 07825 918566
 Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

<sub>*Source: Bank of England
Notes:
1. Mortgage lending is made up of loans to individuals and housing associations secured on dwellings.
2. Gross lending is the total value of residential mortgage loans advanced and loans advanced to housing associations by societies in the period, including loans for house purchase, further advances, remortgages etc.
3. Repayments of principal are the amount of residential mortgage borrowing repaid to societies in the period. Repayments may be full redemptions where a loan has been held to maturity and then repaid in full (often with the proceeds from an endowment or other investment vehicle) or been refinanced in some way (eg with a remortgage), lump-sum payments which reduce but do not eradicate the outstanding mortgage debt, or regular payments of capital.
4. Net lending is approximately gross lending minus (ie net of) repayments of principal. This is calculated as the increase/decrease in
total mortgage balances outstanding, so also includes other transfers, and items such as interest charged during the month less interest paid, fees charged, write-offs, etc.
6. Figures exclude Britannia from August 2009 onwards, following its merger with Co-operative Financial Services
7. Figures exclude all plcs converted from building societies after the point of conversion.</sub>