Homeowners advised to ensure they protect their mortgage

Published: December 11, 2007

In the wake of the Northern Rock crisis and high interest rates, a mortgage protection provider has reported an increase in enquiries relating to its services from homeowners looking to safeguard their loan.

According to Lifesearch, more and more people are concerned about their ability to cover mortgage repayments in the wake of unexpected incidents such as sickness and unemployment.

The company has called on homeowners to research and seek advice on the mortgage insurance market, as well as the products available - with particular emphasis on the benefits of Income Protection policies for younger people looking to protect their home loan.

Matt Morris, Lifesearch policy adviser, said: "Many people consider protecting their mortgage, but they usually select a policy that will pay it for them when they can't work."

"What they actually should be protecting is their income, which not only pays the mortgage, but also pays all the other bills and the everyday cost of living."

Figures published earlier today (December 11th) by the Council of Mortgage Lenders revealed that mortgage affordability has fallen to its lowest level in 16 years, with first time buyers particularly badly hit.