Three in ten British employees are concerned about being made redundant in the next 12 months, a survey for the homelessness charity St Mungo’s revealed today – but how many of them have covered their secured loans with the right insurance products?

Not enough it seems. Since last year, there also hasn’t been a decrease in the proportion of British adults who are concerned about being forced to leave their home during the next 12 months due to falling behind on their mortgage debts, according to St. Mungo’s.

Getting into debt, especially mortgage or rent arrears, is a recognised ‘trigger’ that can lead to homelessness. Around two thirds of St Mungo’s residents in the charity’s own poll said losing their job had contributed either directly or indirectly to their becoming homeless.

People who do not cover their debts with redundancy, critical illness, income protection or life insurance face their home being taken from them if they lose their job – and as we all know, no one’s job is entirely safe in a recession.

Charles Fraser, chief executive of St. Mungo’s says: “Losing your job, and falling behind on home payments, remains the spectre at the feast for many this Christmas and into 2010.”

There is a simple way of avoiding losing your home, whatever happens to your job, and that’s by taking out some cheap, simple insurance products. Talk to your mortgage adviser about keeping your debts safe and ultimately keeping a roof over your head if you lose your job.

SOURCE: St. Mungo’s, 23/11/09

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