10-06-2008
Rejecting life insurance with mortgages a risky strategy
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Cutting back on personal finances by excluding life insurance with their buy-to-let mortgage can be a "risky strategy", according to an industry expert.
As many people look to cut back on their spending as a result of the global credit crunch, a large number are not taking out protection with their new home loans.
However, by shopping around on the market, consumers do not need to be burdened by life insurance when taking out a mortgage as there are many good deals out there, Simon Firmin, life and pensions adviser for Plan Insure, said.
He added: "It doesn't surprise me that, because of the difficulties people are facing, this problem has become more severe. But it is a risky strategy, for all sorts of reasons. Protection is vital."
Research from My Mortgage Direct found that only one in five borrowers is signing up for life assurance along with their new mortgage deal due to the added restraints on finances brought on by the credit crunch.