It's The New Tax Year 2011, Time To Protect Your Mortgage?

The new tax year always sparks interest and controversy every time, however what makes this years “New Tax Year” so controversial is the sheer number of changes to taxes and benefits.

Households of lone parents with children may become slightly better off – however households with one earner and children will be hit hard. The cost of living over the last couple of years has been challenging enough, we have all had to tighten our belts and go without much we become accustomed to – but now it seems we will feel more “pinch”, and yet again have to look for new ways to keep our heads above water.

On top of all these added costs to our daily lives – imagine something as common as breaking your leg and being on statutory sick pay only for 3 months because you didn’t take out any insurance to protect your mortgage payments. Realistically, who can afford to pay their mortgage on just £79.15 per week (for just 6 months). (based on current Statutory Sick Pay allowance as at time of publication)

Any number of illnesses – most completely recoverable from, could be enough to end up with your home being repossessed because you can’t keep up your repayments.

It’s horrifying to think for as little as a few pence per month you could insure your monthly mortgage payment against an accident or illness. 
Think further about what would happen if the on-going financial pressures bring redundancies to your place of work. If you were made redundant – how would afford to pay the mortgage each month? Unless you have huge savings to cover the ever increasing cost of your mortgage, who would you look to for support to make those payments for you? It’s irresponsible to assume that your job is “safe”.

Unemployment in the UK has risen to 2.53m, which the highest since 1994, According to The Telegraph. 

Some suggest that Interest rates will be on the rise very soon too, so these monthly payments are likely to increase over the coming few months – and its essential that you make provision for that and for the sake of a few pounds each month - secure your home.

With UK households facing huge debt crisis, it’s alarming to think that so many mortgages are still left un-insured with regards to Mortgage Protection, Life Insurances, and Critical Illness Covers.

The number of households being forced to rent a home, due to not being able to afford their mortgage has risen by a massive 40% since 2005. (Source – Mail Online)

Hayley Connolly of Home Shield Insurance services Ltd is dealing with an ever growing number of claims, and relieved customers – because their mortgage payments and household related bills are being paid in full, enabling them to either get well, or find a new job.

Hayley is quick to comment however that Home Shield Insurance is also receiving a huge number of enquiries from customers wondering if there is any type of policy to cover a mortgage “after” their employer has announced redundancies, or “after” an injury/illness has prevented them from working – which of course there is not.

“Please don’t delay in finding the right policy, it can be as cheap as 90p per month per £100 of cover, so there really is no excuse not to at least look into a policy and protect your biggest asset”. 

Sources:

The Telegraph -  http://www.telegraph.co.uk/finance/jobs/8385124/Unemployment-surges-to-17-year-high.html

The Mail Online - http://www.dailymail.co.uk/news/article-1360299/Number-people-renting-homes-soars-40-years.html

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