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Bright Grey warns big mortgages are putting borrowers at greater risk

Bright Grey says more first-time buyers are falling into the protection gap due to rising monthly mortgage repayments.

Product director Roger Edwards says he is concerned by deals such as Abbey’s new deal which allows borrowers to take out a mortgage of up to five times their income.

He says people who take out bigger mortgages may not be able to afford to take out sufficient cover or will not prioritise the payment of protection policies.

Edwards calls this a vicious circle because people who are not insured are less likely to have savings to fall back on in the event of ill-health which could leave them unable to keep up their mortgage repayments.

Edwards says: “We are in danger of seeing a Catch-22 situation developing. People who are taking out a mortgage are taking out the biggest debt that is likely to occur in their lives.

“Adding on a protection policy could be seen as an expense too far. At what point do people start deprioriti- sing protection?”

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