"The reality is that illness or injury can strike at any time, and for those without income protection, the financial consequences can be severe – from falling behind on mortgage payments to relying on family or dipping into long-term savings"
- Debbie Kennedy - LifeSearch
New research from LifeSearch and the HomeOwners Alliance reveals that millions of UK mortgage holders could be financially exposed, with no safety net to cover mortgage payments in the event of sudden income loss.
The study, based on a survey of over 500 mortgage holders, found that 36%, equating to approximately 2.34 million people, have no life insurance, income protection, or critical illness cover in place. Alarmingly, 46% said they would struggle to keep up with mortgage payments within six months of losing their income, while 21% admitted they’d face difficulties in just two months.
Despite 67% of respondents saying they had conversations about mortgage protection, whether with advisers, banks, or family, only 16% have actually taken out an income protection policy.
When asked how they would cope financially in the face of lost income, respondents highlighted a mix of short-term strategies and potentially risky solutions. While 29% said they would cut non-essential spending and 26% would request a mortgage payment holiday, others would take more desperate steps.
Roughly one in five would borrow from family or friends or sell valuables such as cars or jewellery. Another 15% said they would seek Government support like Universal Credit, while 8% would attempt to secure a bank loan. A further 19% said they would scale back savings or pension contributions—potentially undermining their long-term financial stability.
The findings paint a stark picture of a large cohort of mortgage holders lacking a financial buffer, leaving them highly vulnerable to unexpected health or employment shocks.
“These findings highlight a worrying gap between intention and action," comments LifeSearch CEO, Debbie Kennedy, "While many mortgage holders have spoken to someone about protection, far fewer have actually taken steps to put cover in place – leaving themselves and their homes, vulnerable to life’s unexpected events,"
“The reality is that illness or injury can strike at any time, and for those without income protection, the financial consequences can be severe – from falling behind on mortgage payments to relying on family or dipping into long-term savings.
“Protection isn’t just a financial product – it’s a safety net, a plan for the unexpected, and for many, it’s more affordable and accessible than they realise. At LifeSearch, our mission is to protect people properly – helping them understand their options clearly and to put the right cover in place before a crisis hits.”
Paula Higgins, CEO at HomeOwners Alliance added, “These findings should serve as a wake-up call. It's deeply concerning that over 2 million mortgage holders are just a paycheque away from a 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 income protection, a sudden illness or job loss could lead to devastating consequences - including losing your home.
Higgins concluded, “Clearer communication and better signposting at key life stages, like taking out a mortgage, could help people make informed decisions and avoid financial freefall."
