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Life insurance crucial as mortgage lending rises

Date: Mon, 24 Apr 2006

Life insurance cover is vital as more people commit to larger mortgages.

Data from the Council of Mortgage Lenders (CML), whose members account for 98 per cent of UK residential mortgage lending, revealed that gross mortgage lending totalled £28.3 billion in March – a 26 per cent increase on February's level.

"The record lending in March reflects the high level of loan approvals in the autumn and winter as house prices stabilised and consumer confidence returned to the market," said CML director general Michael Coogan.

He added: "Housebuying activity was particularly strong around London reflecting high City bonuses, and this is probably a factor behind the strength of lending."

However, homeowners are advised to ensure they have sufficient life insurance to cover their outstanding mortgage just in case they die prematurely. Otherwise loved ones could face an uncertain financial future and the possibility of being forced to give-up the family home.


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