First time buyers have different protection needs

25-Oct-2006

With more first time buyers taking out longer-term loans, protection requirements are also starting to change, it has been revealed.

According to Bright Grey, a protection provider, because first time buyer mortgages are increasingly for a term longer than 25 years using higher income multiples, there is now an increased need for longer-term protection products.

"The demand for longer-term protection plans has certainly [increased] as more and more people are taking on longer-term mortgage debt," said John Ahmed, marketing and communications director at Home of Choice, an advice firm.

"Critical illness cover is just as important as life cover, if not more so for those who have no dependants," he added.

However, Bright Grey has found that around 50 per cent of first time buyers are more interested in depleting lost savings, rather than diverting funds to pay for mortgage protection products.

Bright Grey offers a range of products, including pension term assurance and critical illness cover.

Aspiring first time buyers worried about how their debts will affect their borrowing power should contact a good broker.

If you want to influence government policies for first time buyers, sign the FirstRungNow first time buyer petition.

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