Homeowners, as well as those looking to get a foot on the property ladder, are looking for ways to better balance their budgets during the cost of living crisis.
This year, MetLife UK has conducted research to explore how people feel about financial protection. As part of this, MetLife explored how UK households would cope with personal financial crises, as well as how their concerns have changed in the past year as the cost-of-living crisis has developed.
MetLife surveyed homeowners, together with people in the process of taking out a mortgage, to understand their financial situations, and what they would do if something unexpected happened.
The findings reveal:
- 48% of people said they’re concerned about missing their mortgage repayments, up from 37% of people in 2021
- 42% have no savings to fall back on if they found themselves unable to pay their mortgage, up from 40% in 2021
- 71% of people we surveyed would be unable to cover their mortgage repayments for more than two months, leaving nearly three-quarters of people exposed if they weren’t earning their usual income
- Only one in 10 people are aware that there are protection policies available specifically for their mortgage repayments
Rich Horner, head of individual protection at MetLife UK, said: “The Chancellor made it crystal clear that tough decisions are necessary to keep mortgage rates down. However, there are still real pressure points affecting potential first-time buyers and current homeowners that need addressing quickly.
“For those with a mortgage, many are starting to see their monthly repayments rise in line with rising interest rates. With the uncertainty around how high interest rates will go and the ongoing pressures on the cost of living, the worry of meeting payments can be daunting. Yet just one in 10 are aware that for a relatively small monthly fee, they can ensure they have protection in place to cover their mortgage repayments – often the largest monthly outgoing for many.
“At a time when households are looking even more closely at their finances to ensure they keep up with household bills and payments, accessing the right mortgage protection policy, such as MortgageSafe, is a simple and cost-effective way to safeguard finances should a homeowner have an accident or were to become ill, and they weren’t earning their usual salary as a result. Providing that peace of mind is more important than ever.”
