New research from Post Office Financial Services reveals that with the average house deposit now at £11,710, many first-timers are left overstretched financially. A third then face the additional shock of household running costs, which are much higher than they expected.
But, despite these financial pressures many are skimping on protecting themselves with 45 per cent not having any kind of protection against loss of income, from accident, sickness or unemployment.
Of those who are unprotected, the majority have avoided doing so because they think it’s too expensive. Almost a third just don’t think they need it.
Claire Oldstein, Post Office Head of Marketing, said: “First-time buyers tend to overstretch themselves, but need to consider what they would do if they lost their income. It’s unlikely they will have a big enough rainy day fund to rely on – especially after pulling together a deposit.”
Worringly, at least one in five FTBs say they would rely on friends and family to help them pay their mortgage if they couldn’t work. One in 20 admit they would have to sell their house in this event.
Oldstein said: “Protecting yourself may seem like another unwelcome expense, but it could actually be money well spent should the unexpected happen.”
