Reducing the risks For borrowers concerned about what might happen if things go wrong, the Council of Mortgage Lenders offers several suggestions about how to reduce the risks of repossession. Borrowing only modestly in relation to your income. Setting aside savings for emergencies. Insuring against the loss of income caused by unemployment or illness. Flexible mortgages now make the third suggestion more possible.
Borrowers can overpay in the good times and take payment holidays in times of trouble.
Lenders regard insurance as the most realistic way for their customers to protect against the possibility of having their homes repossessed.