Insurance
Brits would lose house if they lost job
As many as three-in-ten people would be unable to pay their mortgage if they lost their job, a new report has suggested.
HSBC found a third of people in the UK had a safety net of less than £250, meaning they would not be able to last more than a week.
Nearly a third (30%) would be unable to pay their mortgage if they lost their job.
More than one-in-ten (12%) said they would need to rely on their partner, friends or family to help meet their housing costs, while 10% would need to borrow the money from family outright.
If a person did lose their job around 26% would be forced to apply for government benefits while 9% said they would turn to credit cards, store cards or personal loans to help fund their lifestyle.
A further 8% said they would use their overdraft to help get by.
Almost a quarter (24%) of all households have no savings at all, the bank found. Only 9% of people would have insurance to cover them in the event of an unexpected change in circumstances.
Debbie Thomas, head of savings at HSBC, said: “As 91% of the population does not have their income protected by an insurance product, making sure you have a sufficient financial safety net is crucial.
“This cuts the risk of running into financial trouble should you lose your job or be unable to work, and means you don’t have to resort to methods that could leave you in debt. As a general rule, a minimum of three months’ salary makes for a solid financial backup.”