The ending of the mortgage holiday scheme is “troubling” with the pandemic still being a part of daily life in the UK, according to Rich Horner, head of individual protection at MetLife.
Horner warned that whilst the scheme, which comes to an end tomorrow, gave an all-important lifeline to borrowers removing the scheme too soon could lead to arrears.
He said: “For over a year now homeowners have been faced with ongoing financial uncertainty.
“Not knowing what the future would hold and unsure of how best to plan for what has been an ever-changing situation.
“So the news that the protection for mortgage borrowers is ending, despite being in the midst of the pandemic, is troubling.
“The financial impact of COVID-19 is still very real for individuals and the wider economy, by taking the safety net away too soon we could see homeowners falling into arrears.”
One in seven homeowners (14%) have said they regret not previously having mortgage protection in place before the pandemic.
And Horner added that it is imperative that prospective buyers and current homeowners consider their current financial position and ensure that they are protected against any unforeseen circumstances or illnesses that could leave them unable to meet their mortgage payments in the future.
Almost one in five (19%) have taken advantage of a mortgage payment holiday due to COVID-19.