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It’s hard enough to keep saving each month to keep up your offset mortgage account, so what happens if your mortgage becomes at risk – are you protected?

People spend their lives paying their mortgage, doing all they can to get their rates lower, to reduce their loan amount, but one redundancy, or one injury and all of it could be at risk.

Would you be able to keep your offset mortgage going if you were unable to work? The Trade Union Council says that unemployment will increase in 2009 and then into 2010, so no one is safe over the next 18 months. Just a few missed payments on your mortgage and you may lose everything you have worked so hard for.

But it’s not just unemployment that puts your offset mortgage at risk – how well could you keep paying into your mortgage investment if you were out of work for a few months thanks to ill health or injury? Offset are great because they are flexible, and you may be able to hold out a few months with limited payments. But are you confident you could survive?

So don’t let it happen. If you take out some mortgage protection, unemployment protection or some critical health cover then you needn’t put your mortgage at risk. For a few pounds a month you can be 100% sure that whatever happens, you will not fall into arrears and you will not put your most important financial responsibility at risk.

So talk to an adviser about what you can do to cover your back. It won’t take long and it won’t cost much, so why take the chance?

SOURCE: TUC, 16/06/09

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