From 4 January 2002, Nationwide Building Society is offering new mortgage borrowers and all existing Nationwide members moving home 12 months free Mortgage Payment Protection Insurance (MPPI) when they take out a new Nationwide mortgage. Through this initiative Nationwide is increasing its support for the Government's Sustainable Home Ownership (SHO) initiative.

A recent survey by NOP commissioned on behalf of the Association of British Insurers indicated that one in five consumers believed they could rely on the Government to help with mortgage payments if they were unable to work. However, following changes to benefit payouts, only 25% of new borrowers would qualify for support. Meanwhile, one in three said they planned to rely on savings - despite figures showing that savings average only £750 per household.

Stuart Bernau, Nationwide's commercial and treasury director, said: "Nationwide is delighted to be extending its support of the Government's Sustainable Home Ownership (SHO) initiative especially in these uncertain times. As the research shows many homeowners mistakenly believe they can rely on the Government if they lose their jobs or are unable to meet mortgage payments through illness or injury. The Government's SHO target is for 55% of mortgage holders to have MPPI by 2004, while currently the figure is only around 20%. This initiative shows Nationwide's commitment to increase this figure and is yet another example of how we offer further value for those buying a home."

MPPI is a flexible product that allows the customer to purchase a level of cover from six options. The policy meets all the minimum requirements of the Government's Sustainable Home Ownership Initiative. Customers are offered a choice of three cover types:

• Disability (Accident and Sickness) and Unemployment combined. (ASU)
• Disability only.
• Unemployment only.

The following table compares the cost of cover at various lenders where arranged separately from any other offers, with the cost of the policies available through our sister site, http://www.a-payment-protection-website.co.uk