"We understand that life is busy, and budgets are stretched, but without a safety net like IP, ill-health or job loss could lead to devastating consequences."
- Paula Higgins, CEO of HomeOwners Alliance
Of those surveyed (1,269 homeowners), over a third (36%) haven’t purchased Life Insurance, Income Protection (IP), or Critical Illness Cover (CIC).
Yet, 46% said they would struggle to keep up with their mortgage payments within six months if they faced a loss of income due to ill-health or injury. 21% said they’d face difficulties within just two months.
67% said they’d spoken with someone, such as a mortgage adviser, bank, or family member, about mortgage protection products when taking out their mortgage. Despite this, only 16% currently have IP in place.
If unable to pay their mortgage due to ill-health or injury, 29% said they would reduce their non-essential expenses, followed by requesting a mortgage payment holiday (26%), borrowing money from family or friends (19%), and selling valuables such as jewellery (19%).
Furthermore, 15% revealed they would apply for Government-funded support such as Universal Credit (UC), 8% would try to take out a bank loan, and 19% would reduce their contributions to savings or pension fund.
“These findings highlight a worrying gap between intention and action. While many mortgage holders have spoken to someone about protection, far fewer have taken steps to put cover in place - leaving themselves, and their homes, vulnerable to life’s unexpected events,” explained Debbie Kennedy, CEO of LifeSearch.
She said: “The reality is that ill-health or injury can strike at any time, and for those without IP, the financial consequences can be severe – from falling behind on mortgage payments to dipping into long-term savings. Protection isn’t just a financial product – it’s a safety net, and for many, it’s more affordable and accessible than they realise.”
Paula Higgins, CEO of HomeOwners Alliance, added: “It’s deeply concerning that over 2mn mortgage holders are just a pay cheque away from financial crisis, with no protection in place. A mortgage is likely the biggest financial commitment many of us will ever make, yet too many people are leaving themselves exposed.
“We understand that life is busy, and budgets are stretched, but without a safety net like IP, ill-health or job loss could lead to devastating consequences – including losing your home. Clearer communication and better signposting at key life stages, like taking out a mortgage, could help people make informed decisions and avoid financial freefall.”
