One of the biggest risks that mortgage holders face is having their home repossessed if they are not able to keep up with payments. It is easy to assume that this is a rare occurrence as long as you are working, but statistics reveal that there is around a 1 in 3 chance of a non-smoker being unable to work for two months or more before they retire. Without protection, this would inevitably put pressure on the household finances, perhaps even eating into hard-earned savings to cover the expenses.
Moreover, research from a leading provider reveals that over 5 million mortgage holders in the UK possibly have no protection in place whatsoever to cover their monthly payments. The figures were gathered from a survey of over 2,000 homeowners, which revealed 52 percent had no cover, suggesting potentially 5.2 million in the UK have no protection.
More worryingly, just over a quarter of those surveyed simply had no idea how long they would survive in the event of being too ill to work. Over 1 in 10 also confessed that if the worse was to happen, they would have no idea who to talk to about their situation.
The data reveals that not everybody who has decided against protecting their mortgage payments have considered the real impact of not being able to work. Assumptions about employer and state financial cover in the event of illness and general misinformation continues to prevail in putting consumers off, despite the clear risk they face in the event of non-payment.