Almost half of first-time buyers do not have any insurance to cover their income if they cannot work because of accident, sickness or unemployment, according to research from the Post Office.
The survey of 1,364 people reveals almost half of first-time buyers (FTBs) avoid insurance because they think it is too expensive and almost a third do not think they need it.
Despite this, one in 20 say they would have to sell their house if they were unable to work and could not pay their mortgage, and at least one in five say they would rely on friends and family to help them cover their outgoings.
Claire Oldstein, head of communications at Post Office financial services, says: “FTBs are putting their finances, and potentially their homes, at risk by failing to protect their income, especially if we continue to see interest rates rise.”
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