The well known charity known for its interest in social policy is recommending that a new type of insurance should be put in place to provide a safety net for people at risk of losing their homes.

 They are calling for the formation of a Sustainable Home Ownership Partnership (SHOP) which could provide cover for total mortgage repayments for 10 months, if a homeowner is unable to work for any reason.

The scheme would be set up as a partnership between the Government, lenders and borrowers, with the aim to provide much cheaper insurance than is currently available.

The charity estimates that less than one in five homeowners has any form of income protection.

The scheme could also provide cover for around £3.40 per month for every £100 of mortgage repayment.

The Foundation is suggesting that borrowers pay 50% of the cost, with lenders and the Government both contributing 25%. The money could then be used to buy block insurance or build up reserves.