One in five FTBs rely on family rather than MPPI

One in five first-time buyers say they would rather rely on friends and family to pay their mortgage than take out payment protection in the event of losing their jobs.

This apparent lack of faith in mortgage payment protection products comes as research by the Post Office shows that half of first-time buyers could only pay their mortgage for six months if they lost their job. Almost the same percentage, 45%, don’t have any form of MPPI.

The Post Office says with the average deposit for a house at £11,000, many buyers are overstretched financially.

Claire Oldstein, head of marketing at the Post Office, says: “First-time buyers tend to overstretch but must consider what they would do if they lost their jobs. They are unlikely to have a big enough rainy day fund to rely on.”