New advice on taking out mortgage protection cover has been issued by a UK-based insurance firm.
Using insurance to safeguard mortgage payments is essential in the current financial climate, Legal & General claimed today.
According to the cover provider, taking out mortgage protection is particularly important in the current financial climate - with groups such as the Council of Mortgage Lenders predicting a rise in the number of people falling behind on their payments due to the ongoing economic downturn.
Figures from the government show that the number of repossession orders made by English and Welsh courts hit 27,500 over the first quarter of 2008 - a 17 per cent rise on before. Last week, money charity Transact also released a report stating that homeowners facing repossession were even being denied free legal advice because the services were becoming heavily oversubscribed.
Bonnie Burns, product marketing director at Legal & General, commented: "Anyone with a mortgage is likely to be worrying about how much their payments might rise if they have to remortgage this year.
"This is set against a backdrop of higher council tax, higher food and petrol bills and slow wage increases. The question on many people's lips could therefore be 'can I afford protection?' but the question should be 'can I afford not to have it'! Most families' finances would unravel if a parent died or became too ill to work. They are risking their futures by not protecting their key asset - their future income."
