Millions of UK mortgage holders could be financially exposed if faced with a sudden loss of income, according to new research from LifeSearch and HomeOwners Alliance. The survey of over 500 UK mortgage holders found that 36% have no life insurance, income protection, or critical illness cover in place — equivalent to an estimated 2.34 million people.
The findings show that 46% of mortgage holders would struggle to keep up with payments within six months if they lost income due to illness or injury, with 21% facing difficulties within two months.
While 67% of respondents said they spoke with someone about mortgage protection when taking out their mortgage, only 16% currently have income protection in place. This gap highlights a lack of follow-through, despite conversations around the need for financial safety nets.
Without protection, many would rely on short-term or high-risk measures to stay afloat. These include cutting non-essential spending (29%), requesting a mortgage holiday (26%), borrowing from family or friends (19%), selling personal items (19%), or applying for government support such as Universal Credit (15%). Others said they would dip into savings or pension funds (19%) or try to access loans (8%).
Debbie Kennedy, CEO of LifeSearch, said: “These findings highlight a worrying gap between intention and action. 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 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 income protection, a sudden illness 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.”
