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Bereaved Brits left with £32bn mortgage debt

Seamus Hasson
Written By:
Seamus Hasson
Posted:
Updated:
26/11/2014

Brits have accumulated £32bn of mortgage debt since July last year as the result of losing a partner, according to research from Legal & General.

The research polled 2,070 British adults revealing that a total of £32bn had been built up in unpaid mortgage debt during the 16-month period.

It revealed 1.45m households suddenly lost a key bill payer in the past 12 months with almost half of that group (47 per cent) left with a mortgage to pay when the tragedy occurred.

Households where the main breadwinner was unable to work due to illness or death have an average outstanding mortgage debt of £61,539.

Jeremy Duncombe, (pictured) director, Legal & General Mortgage Club, said: “These figures highlight the worrying number of borrowers out there who have been sold a mortgage without adequate protection cover. Tangible objects, such as pets and home contents, are often perceived as much more straightforward to insure, meaning that mortgages are sometimes left out of the equation.”

Duncombe said as the market rebounds there is an opportunity to secure more protection as well as mortgages. 

“More than that, however, it is vital that advisers make people aware of the risks they are taking if they have no protection, as they could very quickly find themselves in a situation where they are unable to meet their repayments,” he added.

 


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