Three out of four homeowners who release equity from their homes then fail to cover the additional debt with life cover, suggests research by Egg.
According to a survey of 2,000 individuals, 74% of those who choose to release equity from their homes do not have sufficient live insurance to cover the debt. More worryingly, one in four people questioned say they also do not have sufficient life cover to protect their mortgage debt, generating an average funding gap of around £39,778. A quick calculation of the 25% average shortfall turns into a national mortgage debt gap of around £113bn suggests Egg. IFAonline
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