Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Homeowners Cutting Back on Protection Amid Rising Costs, Says MetLife UK
Rising household costs are leading many UK homeowners to reduce or cancel their protection policies, according to research from MetLife UK. This comes despite an increase in concern about financial resilience and mortgage protection among homeowners.
MetLife UK found that 75% of advisers say their clients are more concerned about mortgage protection than they were 12 months ago. Of these, 22% described clients as “much more concerned” and 53% as “slightly more concerned”. Only 18% of advisers reported no change in client attitudes.
However, the research also shows that financial pressures are causing instability for those who already have cover. Over the past year, 77% of advisers have seen an increase in clients cancelling policies or reducing their level of protection. This includes 25% who reported a significant increase and 52% who reported a slight increase. Only 16% of advisers saw no change in the number of clients cancelling or reducing cover.
Additionally, more than two fifths (43%) of advisers said they often hear clients express an intention to take out mortgage protection but then fail to follow through. A further 24% said this always happens after such conversations.
These findings highlight the ongoing challenges faced by UK households as they balance the need for financial protection with other budget pressures. The trends are relevant for letting agents and inventory clerks, as changes in homeowners’ financial resilience and protection cover may impact tenancy stability and property management.
Source: Mortgage Strategy