Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Rising Costs Lead Homeowners to Cancel Protection Policies
A recent report from MetLife UK has found that more than three-quarters of advisers have seen clients reduce or cancel protection policies, even as interest in such cover grows. The findings highlight the impact of affordability pressures on homeowners, with many unable to maintain or increase their mortgage protection.
According to the report, 77% of advisers said their clients had reduced or cancelled protection policies. Of these, a quarter reported a significant increase in this activity, while 52% noted a slight rise. Meanwhile, 16% of advisers saw no change in the number of clients cancelling or reducing cover.
The report also found that 75% of advisers observed greater concern about mortgage protection among clients over the past year. Specifically, 22% said clients were 'much more concerned', and 53% described them as 'slightly more concerned'. Only 18% of advisers reported no change in client interest in mortgage protection during the last 12 months.
Despite this increased awareness, more than two-fifths (43%) of advisers said clients often expressed a desire to take out mortgage protection but did not follow through. A further 24% said this always happened.
MetLife UK stated that these findings reflect the short-term affordability pressures facing households, even as they recognise the importance of protection. The report underscores the ongoing challenges for advisers and property professionals in supporting clients to make informed decisions about their financial security.
For UK letting agents and inventory clerks, these trends may signal increased vulnerability among tenants and homeowners, as fewer households maintain adequate protection against financial shocks.
Source: Mortgage Solutions