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Government protection - a homeowners dream

 With benefit cuts and the failure of the government's Mortgage Rescue Scheme, homeowners must understand that they cannot rely on state help alone if they lose their income.

The Mortgage Rescue Scheme was intended to help 6,000 households struggling to pay their mortgage: in its first two years it has helped just 2,600. 

Not only that, but the scheme is over budget, with the average cost of each rescue reaching £93,000 compared to an expected cost of £34,000 - a burden the government can ill afford as it looks to cut costs across the board.

Given this situation, it is hugely concerning that consumers still believe they would not need to worry if they lost their income due to unemployment or sickness.

In a recent survey, it was found that a third of consumers thought they would rely on the government if their inome suddenly stopped. In light of the ongoing austerity measures, this may not be the best option as the government seeks to reduce the UK's deficit. 

With less support from the government, consumers need to ensure they have a financial contingency plan in place in case the worst happened.

In the same survey, only 11% of people claimed to have mortgage payment protection insurance and a mere 4% had income insurance; worrying figures given the current economic market. 

Yet, almost half said that they would not be able to last longer than three months on their savings alone.

This is pretty startling given the fact that the current jobseekers' allowance would only provide £270 a month, highlighting a real requirement for adequate protection. 

With our strained circumstances set to continue, mortgage payers need to be realistic about their options, ensuring they have a contingency plan in place to support them if their income suddenly stopped due to illness or redundancy.

In the current economic backdrop, consumers need quality advice more than ever.

Posted: 31/08/2011 15:46:22 by Mark Williams | with 0 comments
Filed under: protection

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