Bright Grey has extended the cover of its life and critical illness policies to decrease the risk faced by first-time buyers.
Research conducted on behalf of the company found that 40 per cent of those who bought a house in the last 12 months entered into a mortgage that has a term of over 25 years.
In addition, 14 per cent said they were unable to save more than £100 per month due to using their savings on buying a property.
Consequently, Bright Grey – which is Royal London’s specialist protection division – said that demand for longer-term protection plans has increased as mortgage lenders offer longer-term mortgages and higher multiples to help people onto the property ladder.
“Of course people want to replace savings that have been wiped out, but it seems that the vast majority of new homeowners are strapped for cash,” said Roger Edwards, product director of Bright Grey.
“Protection really should be the priority,” he continued, stating that first-time buyers who find themselves unable to work could see their home “slip away” should they fail to buy cover.
Bright Grey was founded in 2003 and aims to provide a range of protection policies to cover the event of sickness or death.
This article: © Moneyexpert Ltd.