A quarter of all homeowners would have no idea about how to repay their mortgages if they lost their jobs or fell on hard times because of ill health. The findings, part of research by HSBC carried out by NOP, also showed that just over half have insured their mortgage repayments.
"Sustainable home ownership and increased take up of mortgage payment protection insurance are inextricably linked, said John Massey, Head of Mortgages. "20% of mortgage arrears are caused by accident, sickness and unemployment." The bank has a stand alone Mortgage Repayment Protector, which will cover monthly mortgage repayments for up to 12 months for accidents, sickness and unemployment, and finds that it would cost the typical homeowners £21 per month to protect a monthly mortgage payment of £328.
