14 Jan, 2008
Around 15 million Brits suffered a financial hit as a result of
being unprepared for big life changes over the last two years, says
new research from Abbey Mortgages.
The survey shows that almost two thirds of Brits (62%) have
undergone a significant life change over the last two years, which
has impacted them financially, and at least one in every three of
these was unexpected.
Job changes account for the most common life change, with almost a
third of Brits (30%) of those polled having moved jobs in the past
Abbey says that while 7.7 million people - 17% of respondents -
are better off as a result of their new job, 5.9 million people -
13% - have taken a pay cut.
The survey states that 21% of Brits experienced bereavement in the
past two years, 16% moved home and 11% had an illness that meant
they or their partner was unable to work.
A further 7% had a child and 5% received a windfall of some
But only 41% of those questioned expected a financially significant
event to happen to them over the same period.
Nici Audhlam-Gardiner, head of mortgages at Abbey, says: "We all
know that it pays to be prepared, but what's interesting is just
how many people experienced a big life change in the relatively
short period of two years.
"Making sure you have sufficient protection to cover job loss or
illness when you have a big commitment such as a mortgage is one
way of being prepared."
She adds: "Having a flexible mortgage could save you paying over
the odds if your circumstances change."