"Homeowning Brits are facing a perfect storm of higher-for-longer rates, sticky inflation and economic uncertainty with ongoing geopolitical conflict and disruption to global energy markets."
- Phil Jeynes - MetLife UK
New research from MetLife UK has found that one in four (28%) of homeowners have already fallen into financial difficulty, resulting in them missing a mortgage payment due to illness or injury, while millions of UK mortgage holders are just one health shock away from missing a payment.
In many cases, the impact is not a one-off. 7% say they have missed mortgage payments multiple times after being unable to work, underlining how quickly financial pressure can spiral.
Additionally, half of Gen Z mortgage holders report that they have already missed payments due to illness or injury, pointing to a generation particularly exposed to income shocks.
The typical mortgage bill now exceeds £1,000 a month, raising the stakes if income suddenly stops.
While 71% of mortgage holders say they have savings to fall back on, these savings would last just six months on average, and for many, far less. One in five have no savings at all.
When the money runs out, most are forced to rely on others. 34% would turn to family, and 24% to a partner. Just 17% say they would rely on insurance, while 15% would consider taking on more debt through short-term loans.
One in ten say they have no one to turn to, and 8% admit they would simply miss mortgage payments.
The research also exposes a sense of hindsight and misunderstanding around protection. Nearly one in 10 say they regret not taking out cover after experiencing illness or loss of income, while 8% assumed they were already protected when they were not. 8% also admit they only think about protection once it is too late, and 6% believe they simply will not fall ill or suffer a serious accident.
MetLife says that the findings lay bare a stark reality: for many households, a single accident or illness could trigger an immediate financial crisis, yet protection is still too often overlooked until the consequences hit.
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"Homeowning Brits are facing a perfect storm of higher-for-longer rates, sticky inflation and economic uncertainty with ongoing geopolitical conflict and disruption to global energy markets," Phil Jeynes, head of individual protection at MetLife UK, said.
"When illness or injury stops income, we see how quickly mortgage payments can become a struggle, with many relying on limited savings or family support," Phil continued. "Protection is there to help provide a financial safety net when life doesn’t go to plan."
