Mortgage lenders failing to offer protection

clock

Following findings that only 2.7% of new mortgage borrowers buy unemployment, has been revealed nearly half of mortgage lenders are failing to offer it as an option.

Mortgage protection specialist, British Money asked 1000 new mortgage borrowers why they didn't purchase cover; 46% said it was not discussed or offered to them by their lender so they didn't know it was available, 27% thought it unnecessary as the State would protect them if they lost their job and 24% would never buy the product as it has a tarnished reputation. The remaining 3% purchased cover - in line with previous survey findings.

Simon Burgess, director of British Money, said: "These figures are astounding, why are so many mortgage lenders shying away from offering the very products that will prevent customers from amassing debts and enable them to keep their homes during times of hardship?

"It doesn't make sense - lenders are asking borrowers to jump through hoops to evidence they can meet their financial commitments before offering a mortgage but are not offering support mechanisms when they can't."

More on Insurer

Leveraging workplace health for economic growth

Leveraging workplace health for economic growth

Solving economic inactivity

Rebecca Ward
clock 06 November 2024 • 3 min read
New non-exec director for ABI

New non-exec director for ABI

Sacha Romanovitch takes the role

Cameron Roberts
clock 04 November 2024 • 1 min read
Iress adds Zurich to The Exchange platform

Iress adds Zurich to The Exchange platform

Adopts ex-smoker questions

Jaskeet Briah
clock 24 October 2024 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read