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Life insurance vital to protect mortgage debt

Date: Tue, 02 May 2006

Life insurance cover is vital as the total UK mortgage debt rises to more than £1 trillion.

Figures from the Council of Mortgage Lenders (CML) show that Brits now owe a significant amount of money on their mortgage and should consider a life insurance policy to help protect loved ones if the worst should happen.

However, the CML data also reveals that UK homeowners are holding around £3.6 billion of unmortgaged property wealth because of recent housing market booms.

"The £1 trillion threshold is clearly a landmark but it does not have any particular significance for policy-makers or others," said CML director general Michael Coogan.

He added: "Over time, owner-occupation has the potential to create wealth and independence for people, and we will continue to work for the expansion of sustainable home-ownership."

The number of people with a mortgage has steadily increased over recent years, with 60 per cent of the population owning their own home in 1986, compared to 70 per cent now.


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