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As the Council of Mortgage Lenders details more alarming growth in the number of homeowners falling into mortgage arrears – now up to nearly 170,000 by the end of 2008. Payment Protection Insurance lobbyist Sara-Ann Burgess urges homeowners to purchase cover that pays a monthly income should they lose their jobs.

Burgess, of British Insurance, says: “There’s a clear correlation between the increasing number of job losses and mortgage arrears, so it makes sense to buy a policy that will ensure continuity of income to meet monthly bills.

“PPI provides a valuable financial safety net for people whose income is interrupted through accident, sickness or unemployment.”

Burgess has calculated that 168,000 households in arrears by the third quarter of 2008 equates to around 613 households per day unable to meet their loan repayment.

“This figure is staggering and frightening,” says Burgess. “Whilst I realise PPI may not be suitable for all, I do wonder how many homeowners could have given themselves some financial breathing space with a policy that pays their bills for up to a year?

“It’s all very well calling for lenders to be more sympathetic to homeowners’ dilemmas and lobbying the Government to do more. But monthly bills still won’t get paid and debts will continue to rise.”

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