Mortgage News

Brits 'financially unprepared for changes' - 09/01/2008

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New research from Abbey Mortgages has suggested that when it comes to unexpected life changes, "it pays to be prepared".

According to a recent study from the group, some 15 million Brits experienced financial difficulties as a result of a big life change catching them unawares.

Among the changes that may cause a financial impact, a change in employment situation was named as the most common, followed by bereavement, moving home, or suffering an injury or illness rendering them unable to work.

However, when surveyed, 41 per cent of the people who experienced a life-changing event between 2006 and 2007 claimed they had plans in place to address these changes.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said it is important for everyone to have emergency finances in place in case of a sudden change.

"Even when you do prepare, sometimes big things hit us from out of the blue, so it's important to make sure your finances are in shape and able to withstand whatever events life throws at you," she said.

She added that people may be interested in protection to cover illness or job loss and that a flexible mortgage may be beneficial for those who may have to relocate because of a new job.

New research from MoneyExpert indicates that household budgets may face added pressure this year due to the continued effects of the credit crunch and the rising cost of living.

© Adfero

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