Mortgage holders still need protection despite government initiative

Homeowners throughout the United Kingdom are facing up to increasing pressures exerted by the economic downturnand a new government initiative will not be able to help everyone.

The government have extended provisions made to help homeowners manage their mortgage repayments after they have been made redundant or unemployed, but the Council of Mortgage Lenders (CML) says these may not go far enough. The extension, just announced, means the benefit scheme now applies to home loans of up to 200,000 helping individuals make their repayments. However, as a spokesman from the CML has noted: It is only going to be of assistance to somebody who may be buying on their own or if both partners lose their source of income, before adding "So it will help a few home owners but not a huge number.

As reported on the Reuters website ("http://uk.reuters.com/article/personalFinanceNews/idUKLNE50401K20090105?pageNumber=1&virtualBrandChannel=0") there are already 11.7 million home loans outstanding in Britain, averaging at 102,000 pounds.

For those homeowners who will not be helped by government initiatives, mortgage payment protection insurance (MPPI) is one option that can offer piece of mind, if they have not already suffered redundancy or have not already been made aware of its likelihood. In a chilly financial climate where the downturn is expected to claim many jobs deep into 2009, everyone will be looking to keep their mortgages and general finances as stable as possible, riding out this period until the better times arrive.