Why bother with mortgage protection?
- 19TH JULY 2007
There has been much speculation in the UK since the turn of 2007 regarding individual homeowners’ mortgages and mortgage protection, and how they are affecting the average person’s ability to live. The comments of experts on the mortgage industry have come after a series of interest rate rises that have seen the average homeowner struggling to keep up with their monthly mortgage repayments.
Although the interest rate increases have benefits for savers, for those already having difficulties making repayments it could result in the loss of their homes. This is why mortgage protection is of the utmost importance.
In early July, interest rates were increased by the Bank of England to 5.75%, despite being raised to 5.5% just two months previously. As the figure is now the highest it has been since March 2001, there is definite cause to worry about the state of the housing market and this alone should send homeowners flocking to mortgage protection providers in droves.
House prices have been so inflated since the mid-1990s that first time buyers are often unable to get on the property ladder, and those that are often make significant sacrifices to do so. Those sacrifices may well now appear to be in vain if an employment setback could prevent repayments being made. Mortgage protection may be considered an unnecessary extra in some quarters but it could actually be a Godsend for certain individuals.
Standalone and independent payment protection specialists British insurance is just one of the providers of mortgage protection that could really help to put homeowners at their ease. Low monthly premiums do not put a strain on household finances, but do give peace of mind.
