Mortgage affordability in the UK has once again been hitting the headlines - and once again, not for good reasons as far as the ordinary homeowner is concerned. That’s because interest rates have been put up again by the Bank of England, from 1.75% to 2.25% - the latter the highest seen since November 2008.
This, in turn, is raising the prospect of mortgage payers whose loan is directly linked to the base rate facing repayments at rates of between 3% and 4%, compared to 1.75% and 2.75% five months ago.
The present moment, then, might be one when you are carefully calculating how much you will be able to afford - and the results of a new poll have drawn attention to just how little protection great numbers of homeowners presently have when it comes to the repayment of their mortgages.
What did the research discover about how protected mortgage payers are?
The survey in question, carried out by a leading global insurance provider and reported on by Mortgage Solutions, found that of about 2,000 homeowners or those presently buying a property, 42% claimed to have no savings they could use to cover payments in the event of illness or injury preventing them from working.
Overall, 46% of homeowners did not have adequate financial protection to cover mortgage payments, which underlines the high risk of many people being forced to miss payments if their financial situation was to deteriorate.
About a tenth of respondents stated that with no savings, there was no one they could turn to as a means of keeping up with their mortgage repayments, while 15% said that in such a situation, they would take out a short-term loan.
More than a third of those polled - 37% - said their first port of call would be their family, while 18% said they would turn to insurance to help them keep on top of their mortgage payments.
Could mortgage protection insurance be an option for you?
If you are among those would-be or current homeowners who are now considering the merits of mortgage protection insurance, you will be far from alone. This popular protection product provides tax-free payments to help cover the mortgage payments of policyholders who are rendered unable to work as a consequence of illness or disability.
There’s a lot more to know about mortgage protection insurance than just that, though, and here at QuoteLifeCover, we are anxious to ensure worried homeowners can find the best-matched policy for their needs, instead of rushing to commit to an ill-suited policy they might regret.
This is why we have set up a free, no-obligation advice and quotation service, which you can call on 0800 316 6917. Reach out to one of our UK advisers now, and you can be confident of finding the income or mortgage protection insurance policy that will give you crucial peace of mind at a troubling time.