Four in 10 UK homeowners have no savings to cover mortgage payments if they fall ill and are unable to work.
This is according to a survey of 2,000 homeowners which showed 42% of respondents have no savings to cover payments should illness or injury prevent them from working and 46% do not have adequate financial protection in place.
Despite this just 19% said they had already missed at least one mortgage payment because of illness or injury.
For those without savings, 14% would have no one to turn to if they could not pay the mortgage and 15% would need to take out a short-term loan to tide them over.
However, most people would turn to family – with 37% saying they would be the first port of call. Just 18% would use insurance to cover their mortgage payments.
Richard Horner, head of individual protection at MetLife UK, (pictured) said: “With increasingly long mortgage terms and statistics showing a quarter of employees took long term sickness leave, it is crucial that families and individuals are not putting their homes at increased risk.
“The misconception that mortgage protection is expensive is preventing people from accessing what is an accessible and affordable form of insurance.
“As families review their outgoings and where they perhaps may need to tighten their belts, it also provides an opportunity to identify any gaps that may make them financially very vulnerable. Cost effective and valuable cover really can provide a safety net and peace of mind.”
