|
News Index
Next
Previous
Research carried out for Bright Grey, the protection specialist arm of insurers
Royal London group, among people who have bought their first property in the
last 12 months shows that over 40% have taken out a mortgage for a term of more
than 25 years.
In addition, a third say all their savings have been wiped out buying their
property, and only 14% are able to save more than £100 a month.
Bright Grey’s Product Director Roger Edwards commented: “Property prices in the
UK have continued to rise and the traditional 20 – 25 year term mortgage is
simply no longer affordable for many people.
“Mortgage lenders are increasingly offering longer term mortgages and higher
multiples to help people get into the property market and own their own home.
"As a result, demand for longer term protection plans has increased as more
people want to cover this longer term mortgage debt.”
John Ahmed, Marketing and Communications Director at advisers Home of Choice
added: "The demand for longer term protection plans has certainly been
increasing, as more and more people are taking on longer term mortgage debt.
"Traditionally it's been life cover that's been available over the longer term.
But for many people, critical illness cover is just as important as life cover,
if not more so for those who have no dependants, which is the case for many
first time buyers. As sales of protection need to increase, it is correct that
products become more flexible too.”
Source:
Getting Paid
|
