Interest rate rise makes mortgage insurance plan essential
- 16TH JULY 2007
At the start of July 2007, the sixth interest rate rise in the space of a year was announced by the British government, and thus takes it up to 5.75%. This is the highest it has been since March 2001 and puts many homeowners, many of whom were already struggling to meet their monthly mortgage repayments, at risk. This latest rate rise serves to highlight why a mortgage insurance plan is now essential.
If any given homeowner were to lose his or her job then the likelihood is that the family would struggle to make repayments without a mortgage insurance plan, but this latest news makes it near on impossible for a homeowner to cope financially. A mortgage insurance plan can actually make mortgage repayments as well as those debts associated with it such as home insurance, should an individual find him or herself unable to work as a result of long term sickness, accident or involuntary unemployment.
With repayment figures fluctuating every few months at the moment, there is nothing certain about the housing market and this is a source of great stress for those who are already on a strict budget.
The ethical payment protection insurance provider British Insurance is one of the companies that are prepared to do the worrying on behalf of their customers if the worst should happen. The mortgage insurance plan they offer is up to 40% cheaper than it would be if a homeowner were to set up a policy with their mortgage provider. These savings also add up and can help to release a little more income to make life easier.
*All figures from Sunday Mail, July 8th 2007.
