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Get life insurance to cover building society borrowing

Date: Mon, 21 Nov 2005

People are advised to make sure their life insurance covers their building society borrowing otherwise debts could be passed on to loved ones.

The latest figures for building society lending in October reached their highest levels for 12 months. Building society gross advances totalled £3,808 million, compared to £3,497 million at the same point in 2004.

The results also showed that savings are down, meaning that life insurance could play a crucial role in ensuring that relatives are cared for it the worst should happen. In the savings market, building societies had net inflows of £821 million in October this year, considerably lower than 2004' levels of £1,068 million.

Adrian Coles, director-general of the Building Societies Association, said: "Building society lending has picked up over the last couple of months or so, with both seasonally adjusted gross advances and commitment to lend reaching their highest figure of the year in October."

"The decline in bank base rates two months previously may have had an impact on how much people saved in October," added Mr Coles.


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