48 per cent of FTBs would only be able to meet their mortgage repayments for six months if they lost their regular income tomorrow.
With the average house deposit now at £11,710, many FTBs are left overstretched financially. A third then face the additional shock of household running costs, which are much higher than they expected.
The Post Office research revealed that despite these financial pressures, many FTBs were skimping on protecting themselves. Almost half (45 per cent) of FTBs don’t have any kind of protection against loss of income, from accident, sickness or unemployment (Payment Protection Insurance). Of those who are unprotected, the majority (44 per cent) have avoided doing so because they think it’s too expensive. Almost a third just don’t think they need it.
At least one in five FTBs (21 per cent) said they would rely on friends and family to help them pay their mortgage if they couldn’t work. One in 20 admit they would have to sell their house in this event.
Post Office head of marketing Claire Oldstein said: "First time buyers tend to overstretch themselves, but need to consider what they would do if they lost their income. It’s unlikely they will have a big enough rainy day fund to rely on, especially after pulling together a deposit.
"Protecting yourself may seem another unwelcome expense but it could actually be money well spent should the unexpected happen. Lifestyle protection is one of the cheapest and most flexible forms of payment protection on the market, not just for mortgages, but for credit cards and loans too."
