View more on these topics

First-time buyers at risk when unemployment knocks

Nearly half of first-time buyers would be able to meet their mortgage repayments for only six months if they lost their regular income tomorrow, reveals research by Post Office Financial Services.

With the average house deposit now at 11,710,2 many first-time buyers are left overstretched financially.

A third then face the additional shock of household running costs, which are much higher than they expected.

The Post Office research reveals that despite these financial pressures, many first-time buyers are skimping on protecting themselves.

45% of first-time buyers dont have any kind of protection against loss of income, from accident, sickness or unemployment.

Of those who are unprotected, 44% have avoided doing so because they think its too expensive and almost a third just dont think they need it.

At least one in five first-time buyers say they would rely on friends and family to help them pay their mortgage if they couldnt work, and one in 20 admits they would have to sell their house in this event.

Claire Oldstein, head of marketing at the Post Office, says: “First-time buyers tend to overstretch themselves, but need to consider what they would do if they lost their income.

Its unlikely they will have a big enough rainy day fund to rely on – especially after pulling together a deposit.”

Oldstein adds: “Protecting yourself may seem another unwelcome expense but it could actually be money well spent should the unexpected happen.

Recommended

Guide to buying in Bulgaria

Westhill Investments has issued a buyers’ guide for potential investors in the Bulgarian property market.This follows Westhill coming across a number of disappointed property buyers who made fundamental purchasing errors. Dominic Hicks, director at Westhill, says: “It’s in nobody’s interest to have disappointed customers. We want people spreading the word that Bulgaria is a great […]

Lenders not held responsible for ID theft

Britons do not hold lenders or the police responsible for protecting people against ID theft, reveals research from online credit report service MyCallcredit.It discovered more than seven out of 10 people think individuals bear the main responsibility for protecting themselves against ID theft whereas only one in 13 thinks it is the responsibility of the […]

66% Back the introduction of energy inspectors

Some 66% of Mortgage Strategy Online readers back the government’s decision to introduce energy inspectors. But trainee home inspectors still say the solution is a slap in the face after the time and money they invested in becoming full inspectors. This week Mortgage Strategy asks: “Is the Tory party’s revamped Right to Buy scheme a […]

Commercial First appoints training managers

Commercial First has appointed two national training managers in newly created roles. Jenny Kovacs has been appointed as training manager in the South, joining Commercial First from Preferred Mortgages where she was an underwriter. Jenny Harte has been appointed as training manager in the North, joining Commercial First from Moneysupermarket where she previously worked as […]

Newsletter

News and expert analysis straight to your inbox

Sign up