Mortgage insurance provides cover against repossession
of your home. You might think that it wont happen o
you. But unfortunately during the last recession their
were 1500 property repossessions a week at one point.
Currently, only 20% of borrowers have mortgage insurance
although the rate is as high as 35% among new borrowers.
With the UK economy slowing down and unemployment predicted
to begin climbing again soon there are worries there
might be another flood of repossessions.
The number of house repossessions in the three months
to June this year rose 18% on the same period last year.
mortgage insurance is an important step in reducing
arrears among borrowers.
However many welfare groups believe the answer lies
in a more tolerant attitude among lenders towards borrowers
who get into arrears.
Since the last recession which saw repossessions top
1500 a week and house prices plunge below the level
the loans were taken out to buy them, the Government
has wound back social security benefits for unemployed
home owners.
Those who lose their job now have to wait nine months
before qualifying for home loan income support. When
taking out a loan it is well worth considering cover
for repayments against accident, sickness and unemployment.
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a conduit to financial websites. We do not give
advice or recommendations in respect of any product offered
by any of the companies listed. Any information listed does
not constitute financial advice or a recommendation under
the Financial Services Act 1986. You are advised to take appropriate
professional and legal advice before entering into any binding
contracts.
