I was asked to help form part of a working group on mortgage arrears which has yet to publish their respective papers on various topics. The one I undertook had to do with mortgage arrears and the issue of life cover on a loan.
While the intention wasn’t to release anything for a few weeks yet, I thought it was pertinent to share this one given some of the days headlines (link to the paper is at the end of the blog).
The area of mortgage protection is a tricky one because some people are paying beyond the necessary amount and others are not, but they equally can’t make the payments so the policy lapses. What happens next is that in some cases a person dies, one example we are working through involves a suicide, and others involve people who become terminally ill.