"[Over] one in ten (11%) existing or soon-to-be homeowners are unaware of protection policies"
Among those surveyed, almost half (48%) are worried about how they will manage their mortgage payments but a concerning number, 42%, don’t have any savings to fall back on should they find themselves unable to work. Despite mounting financial pressure and increased stress, over one in ten (11%) existing or soon-to-be homeowners are unaware of protection policies.
Across the generations, the youngest appear most financially prepared, in the short-term at least. 61% of those aged 18-24 have savings they can use to support up to two months of mortgage payments. Almost half, 47%, of those aged 24-38 have enough savings set aside to cover their mortgage payments for up to 3.7 months.
The research uncovered an appetite for mortgage protection but suggested two key barriers preventing more people from purchasing. Almost two fifths (38%) would consider protection if they were too ill to work. But those who have not taken it out claimed it was too expensive (32%) with a further 29% saying they couldn’t afford it.
Dominic Grinstead, Managing Director of MetLife UK, comments:
“Understandably, UK households are worried about meeting rising costs. While our findings show some have savings that they can use to fund mortgage payments, this feels like a sticking plaster approach. People need to consider how they might cover their largest monthly outgoing over the longer term, should their circumstances change. There are steps that can be taken beyond dipping into savings that will protect homes and families."
