More Borrowers Opt To Take Unemployment Insurance Cover For Mortgage Payments
 

 More and more home-buyers are taking positive steps to counter declining state support for home ownership by taking out insurance to cover their mortgage payments in the event of unemployment and unexpected redundancy.
According to new figures from the Council of Mortgage Lenders and the Association of British Insurers, the number of borrowers taking out mortgage payment protection insurance, to pay their mortgage in the case of accident, sickness and unemployment, has increased by 25 per cent from 1998 to 2000.
The drive for higher take-up of mortgage unemployment insurance was launched in 1999 with improved policies, offering better value for consumers. The initiative also seeks to ensure that policies are better targeted at those who need and can benefit from insurance.
The council's Deputy Director General Peter Williams said: "The economic outlook, and recent reductions in interest rates, are favourable for borrowers but these could lead some borrowers to become too complacent about how they would pay their mortgage in different circumstances.
"Our research shows that many borrowers continue to over-estimate the assistance they would receive from the state if they lost their job or were unable to work through illness or injury.
"Government help with mortgages has been cut back substantially and every home-owner should think about how they would cope if they unexpectedly lost their source of income."