Homeowners ‘would struggle with debt’ if unemployed

A large proportion of homeowners would struggle with debt management if they were unable to work through illness or injury, new research has found.

In a survey carried out by Nationwide, 61 per cent of those questioned said they could not survive financially if this situation were to occur.

People aged 34 or under were the most concerned about this issue, the study found, as three-quarters stated they would not be able to meet bills if out of a job.

The research revealed that 32 per cent of those polled felt they would have to rely on state benefits if they could not work, but Nationwide noted that many would struggle to pay their mortgages on this amount of money.

Spokesperson Robin Bailey commented that people cannot expect to rely on the “value of a house, or even friends and relatives” anymore.

Meanwhile Lucy Widenka, a personal finance campaigner for consumer body Which?, has urged borrowers to take out financial protection in the current climate.

By Jamie Price