Scot Prov survey says nearly a fifth of mortgage holders do not have protection
Almost a fifth of mortgage holders have no mortgage protection, according to a survey published by Scottish Provident in association with market research group MORI.
Of those polled, 19% of mortgage holders have no protection. This is a worrying fact, according to Nick Kirwan, head of product development, at Scottish Provident.
'It shows how much work the industry has to do. It needs to work harder at getting the message across. But it is not all bad news. When we commissioned the survey we expected the number of people with life cover to have fallen following a switch from endowment to repayment mortgages. Our fears were not realised as there has been an improvement,' he said.
The number of people with critical illness has also increased, showing a 4% rise. However, Kirwan believes there is room for improvement: 'There are only 30% of people with mortgages holding critical illness, so there is a long way to go.'
The survey found that among those who only hold death cover or have no mortgage protection at all, the main reason for not holding cover is because it is too expensive ' a factor which Kirwan believes can be rectified by IFAs at a later date.
He said: 'Just because someone cannot afford cover when they buy their first home does not mean they will never be able to afford it. Advisers need to return to clients because their circumstances may change.'
l For more on the opportunities in the mortgage protection market, see the COVER supplement produced in association with Scottish Provident, included with this issue.
