First-time buyers urged to protect income

Thousands of first-time home buyers have been urged to give serious thought to how they would pay their mortgage and other bills if they were unable to work.

In January, the Halifax bank announced that the number of first-time buyers increased by an estimated 22 per cent in 2014 to reach its highest annual total since 2007.

It said there were an estimated 326,500 first-time buyers in 2014, up from 268,500 the previous year and close to the 2007 total of 359,900.

The average first-time buyer deposit in 2014 was £29,218, slightly lower than in 2013 (£31,582) but a substantial 67 per cent higher than in 2007, when it stood at £17,499.

Responding to the figures, Myles Rix, managing director of insurer LV= Protection, said: “Getting the keys to your first home is always extremely exciting.

“However, for many this will have significantly depleted their savings – meaning that they could struggle to meet their financial commitments if they were unable to work for a period of time.

“Income protection offers people peace of mind that they can protect their income and home in the long run, whether a first-time buyer, moving up the ladder or renting.”