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Life insurance reduces potential risk of repossession

Date: Tue, 02 Aug 2005

The first six months of 2005 saw an increase in the number of people struggling to make mortgage repayments – a problem that can be eased by life insurance cover.

Figures from the Council of Mortgage Lenders (CML) show that the number of properties taken into possession increased from 3,070 in the second half of 2004 to total 4,640 in the first half of 2005.

Meanwhile, the total of mortgages in arrears of three to six months rose to 57,220, compared to 53,960 in the second half of 2004. Cases in arrears of six to 12 months stood at 30,980, compared with 26,920 in the second half of the previous year

Deputy director general of the CML, Peter Williams, said: "It now seems clear that the second half of 2004 marked the trough in the number of mortgage arrears and possessions."

He added: "Arrears and possessions now look set to rise a little, but only to the sort of levels experienced in the past few years."

Homeowners are being advised to ensure they have adequate life insurance, so that if the worst happens, loved ones will be able to cover outstanding mortgage repayments and do not risk losing their home.


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Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.