27-07-2007
Young adults happy to abandon financial mortgage protection
A number of young adults are happy to forgo financial protection to secure a larger mortgage, it has emerged.
According to the results of a survey by Liverpool Victoria Friendly Society, 30 per cent of young adults would be willing to reject financial protection as a way of increasing the total amount available to borrow for a new home.
"Home-owning has long been a national passion, and one which continues to cascade down the generations," said Nigel Snell, communications director at LVFS.
"What concerns us is just how many younger buyers are prepared to stretch themselves well beyond traditional lending limits without arranging adequate financial protection," he added.
The study also found that 15 per cent of borrowers in the same age bracket would be willing to obtain a mortgage using an income multiple calculation greater than four.
Liverpool Victoria Friendly Society was established in 1843.
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