Buyers urged to take out mortgage protection insurance

Almost half of owners and buyers are concerned about missing mortgage payments, according to a new survey.

mortgage interest

Property buyers are being urged to take out mortgage payment protection insurance in the new era of high interest rates.

Nearly half of homeowners (48%) are concerned they may miss their mortgage payments, according to a new survey – up from 37% in 2021.

And only slight fewer owners, 42%, say they have no savings to fall back on if they find themselves unable to pay their mortgage for any reason.

MetLife interviewed homeowners, together with buyers in the process of taking out a mortgage, to find out what they would do if something unexpected happened.

Meanwhile just one in ten of those interviewed for the MetLife UK survey were aware that insurance policies were available to protect mortgage payments.

‘Real pressure points’

“There are still real pressure points affecting potential first-time buyers and current homeowners that need addressing quickly,” commented Rich Horner, head of individual protection at MetLife UK.

“With the uncertainty around how high interest rates will go and the ongoing pressures on the cost of living, the worry of meeting payments can be daunting.

“Yet just 1 in 10 are aware that for a relatively small monthly fee, they can ensure they have protection in place to cover their mortgage repayments – often the largest monthly outgoing for many.”

He said that at a time when homeowners are looking even more closely at their finances to ensure they keep up with household bills, mortgage protection policies offer a simple and cost-effective way to safeguard finances should a homeowner have an accident or become ill.

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