Mortgage lenders fail to offer unemployment cover
He commissioned online market research firm Usurv to today survey 1000 new mortgage borrowers, asking why they didn’t purchase unemployment 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.
Burgess 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.”