Analysis of the latest Central Bank figures shows 95,500 homeowners are in arrears for three months with many potentially under insured.
This is according to Caledonian Life, who said that of the 95,500 homeowners who are in arrears many could be unaware of the need to reflect any changes to their Mortgage repayment structure in their Protection policies.
According to Tadgh Malone Caledonian Life representative in Leitrim, “According to a Moodys report from less than a year ago 13.7% of people in Leitrim have defaulted on their mortgage and unfortunately it is unlikely that this % has decreased with the latest Central Bank figures revealing that arrears are on the up. So too are restructure arrangements for home loans, with nearly 80,000 mortgage accounts classified as restructured.
“Interest only arrangements and reduced payment arrangements continue to account for the majority of all restructures. These will both have a knock on effect on the adequacy of the mortgage protection policies people have in place.”
Tadgh added, “With sufficient level term cover in place, the mortgage will be cleared should you die. However we would urge anyone considering changing any aspect of their protection policy to take expert advice before making any final decisions”.