Lasting protection key for long-term borrowers

More than four in ten people who made their first property purchase this year took out a mortgage with a term exceeding 25 years, reinforcing the need for longer-term protection.

Financial protection specialist Bright Grey conducted the research, which also shows that the majority of recent first-time buyers consider savings to be more important than insurance.

Only one in four mortgage-holders have cover that completes repayments should they die and less than a third of new homeowners have mortgage protection should they suffer a critical illness or lose their job.

"Mortgage lenders are increasingly offering longer-term mortgages and higher multiples to help people get into the property market and own their own home," commented Roger Edwards, product director at Bright Grey, a subsidiary of the Royal London group.

"As a result, demand for longer-term protection plans has increased as more people want to cover this longer-term mortgage debt," he added.

Marketing and communications director at the real estate specialist Home of Choice, John Ahmed, confirms that "the demand for longer-term protection plans has certainly been increasing, as more and more people are taking on longer-term mortgage debt".

He also noted that critical illness cover is becoming just as vital for homeowners as life cover, particularly for householders with dependants.

Responding to its latest statistics, Bright Grey has unveiled several new critical illness and life cover insurance deals with maximum terms of up to 40 years.

"It's really tough for first-time buyers to get their foot on to the property ladder these days, so why risk having your new home slip away because you don't have cover in place," concluded the Bright Grey product director.