Securing a mortgage can feel like the pivotal step in achieving financial independence. Yet, too many mortgage holders are taking on this major commitment without protecting their financial freedom, new research warns.

Safety net?

More than one in three UK mortgage holders have no life, income or critical illness cover, the research¹ found, meaning that millions of households lack the certainty that they would be able to keep up with their mortgage payments if they were to suddenly experience a loss of income.

Worse, the research found that almost half of mortgage holders would struggle to make their monthly repayments within six months of losing their income. To stay afloat, many suggested they would have to borrow or sell valuables.

Mortgage then protection

As a mortgage holder, you may feel that your financial security is now assured. However, in the event that you were no longer able to work, the financial situation you have worked so hard to reach could quickly unravel. Income protection may help support you if you cannot work, depending on the policy terms.

One in five mortgage holders said they would borrow money from family or friends if they could not keep up with payments. The same proportion would sell valuables such as their car or jewellery, while 8% would try to take out a bank loan.

Instead of these reactive measures, being proactive can leave you in a much better position. To protect your future finances, income protection and life insurance cover ensure you and your loved ones will be able to keep up payments – whatever life throws at you.

¹LifeSearch and HomeOwners Alliance 2025

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.