Two in five mortgage holders lack protection cover, MetLife says
39% had no cover, while 33% said they definitely had mortgage protection and 28% were unsure.
Almost two in five mortgage holders had no protection policy to cover repayments if they were unable to work, research from MetLife UK found.
39% had no cover, while 33% said they definitely had mortgage protection and 28% were unsure.
Women were more exposed, with 43% lacking cover compared with 35% of men.
Among borrowers without protection, 25% said they could not afford it and 15% had prioritised essentials such as food, energy and fuel.
12% were unaware protection was available, 11% had not got around to arranging it and 9% had not been offered cover when taking out their mortgage.
30% of mortgage holders were worried about getting into debt, while 28% were concerned about illness, losing their job or keeping up with mortgage payments.
MetLife UK also found 77% of financial advisers had seen customers reduce their level of cover or cancel policies.
Phil Jeynes, head of individual protection at MetLife UK, said: “When mortgage bills soar, people often go through their bank statements with a highlighter looking for anything to cut and asking, ‘Can we afford this?’ – we get it.
“Cancelling protection feels like an easy saving until life knocks you sideways.
“But walking away from the exact safety net which protects your home and livelihood is a massive gamble.”
Jeynes added: “Before making the decision to cancel cover, look at your options – whether that’s checking for workplace benefits or tweaking your policy to bring down the monthly cost.
“Having even a basic buffer in place, such as our EverydayProtect accident & health cover or MortgageSafe cover, is infinitely better than standing completely exposed if the worst was to happen.”
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