According to Sara-Ann Burgess, director at payment protection insurance specialist Burgesses, it is not since the early nineties that a faltering labor market has combined with a plummeting housing market to create an impossible situation for many borrowers.
“Since negotiating the problems of the early nineties, there have always been either good employment prospects or rising house prices to help borrowers deal with any problems they faced. Now both crutches been taken away a huge amount of ordinary people are going to struggle.”
Should redundancy force borrowers to sell up, falling house prices may leave them in a position of negative equity, giving them nowhere to turn. Equally those who have been used to withdrawing equity from their property and taking advantage of low interest rates are finding there is no more capital left to squeeze out of their property.
Burgess commented: “The latest figures from the FSA show that repossessions in quarter two of this year were up by 71% on the previous year. People simply have nowhere to go if they get into trouble now that house prices are falling and a growing number of people are being made redundant.”
Burgess urged borrowers to reassess their need for protection insurance in the light of the deteriorating environment.
“I think people now realize they are not as secure as they were in the past but are perhaps wary of what the protection market can offer them. Seeking out independent providers such as British Insurance will help them get low cost, high quality cover that puts a safety net in place for their family.”
In a changing environment, Burgess said it was important borrowers were also prepared to change their own approach to their finances and tailor it to best serve the long terms needs of both themselves and their families.
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Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.