More consumers are concerned about protecting their mortgage than 12 months ago but rising household costs are forcing many to cancel their protection policies or reduce their level of cover, research from MetLife has found.
Indeed, three-quarters of advisers’ report rising concern from consumers about paying their mortgage, with around a fifth (22%) “much more concerned” and just over half (53%) “slightly more concerned”.
Yet 77% have seen clients cancel their policies or opt for lower protection to afford their household bills.
A quarter reported a significant increase in cancellations and reduction in the level of cover, while more than double (52%) has seen a slight increase.
Then there are the 43% of advisers who told MetLife that clients intend to take out mortgage protection but failed to close the deal.
A quarter (24%) said this always happens following such conversations.
Phil Jeynes, head of individual protection at MetLife UK, (pictured) said: “Households across the UK continue to face difficult financial decisions, and our research highlights a worrying contradiction: people are increasingly aware of the need for protection, but some are having to make difficult choices as budgets remain under pressure.
“We get it. We understand that families are making difficult choices about where their money goes, and that protection has to compete with many other household priorities.
“That is why advisers play such an important role in helping customers understand the value of cover and make decisions that are right for their circumstances,” he added.
