A recent survey by Insurance group MetLife has found that 26% of homeowners have not been able to make their mortgage payments due to insufficient income during a period of ill health.
The consequences of not maintaining your mortgage payments can be unthinkable, with the lender being able to repossess your home as a last resort. However, it is also the impact on your credit report where just one late or missed mortgage payment can impact your ability to get future credit and mortgages. One late or missed mortgage payment will remain on your credit report for six years.
The survey also revealed that a third of homeowners have had to take four weeks or more off work to recover from illness or an accident. What's more, 47% of those who had to take four weeks or more off said that they needed immediate financial support to meet their mortgage payment. Nearly half of homeowners said they had no financial protection in place, despite 43% stating they are worried about making their mortgage repayments should they fall ill and have a drop in their income.
These are worrying figures. Nobody knows when they may fall ill, how serious it will be and how long they will have to stay off work. And while we all try to save for a rainy day, predicting what financial support you may need and why is not always easy, which is why we take the time to review and discuss all options with our clients thoroughly.
If you would like a no-obligation financial review, get in touch here.