Almost half or 48 per cent are worried about how they will manage their mortgage payments, according to new research from MetLife UK.
The study reveals the level of concern UK homeowners have about being able to pay their mortgages as the cost-of-living problem continues to have an impact on families.
42 per cent of respondents to the poll revealed that they have no savings to fall back on in the event that they are unable to work. Over one in ten, or 11 per cent, of current or upcoming homeowners are ignorant of protection policies despite rising financial strain and increased stress.
The younger generations, at least in the near term, seem to be the best financially equipped. 61 per cent of people between the ages of 18 and 24 have funds that would cover their mortgage payments for up to two months. 47 per cent of people between the ages of 24 and 38 had enough money saved up to cover their mortgage payments for up to 3.7 months.
The study revealed a need for mortgage insurance but identified two major obstacles preventing more consumers from making purchases. If they were too ill to work, 38 per cent of respondents, or nearly two-fifths, would think about protection. But 32 per cent of those who haven’t used it said it was too pricey, and another 29 per cent said they couldn’t afford it.
MetLife UK managing director Dominic Grinstead says: “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.
“Our new MortgageSafe product is an accessible and affordable solution for homeowners. Flexible cover starts from just £8 per month, offering the reassurance that mortgage payments of up to £1,500 will still be covered if illness or injury prevents people from working. We have designed flexible levels of cover to suit lifestyles and the option of Child Care Cover for an extra £3 per month offers additional peace of mind.”
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