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April 30, 2025
Millions of UK mortgage holders could be living without any financial safety net, with no income protection in place to keep up with their mortgage payments if they were to suddenly experience a loss of income, new research from LifeSearch and HomeOwners Alliance reveals.
The research, which surveyed over 500 mortgage holders in the UK, finds that over a third (36%) currently have no form of life insurance, income protection, or critical illness cover – equating to roughly 2.34 million* mortgage holders nationwide.
Even more concerning, almost half (46%) said they would struggle to keep up with their mortgage payments within six months if they faced a loss of income due to injury or illness – with a fifth (21%) facing difficulties within just two months.
Over two-thirds (67%) of those surveyed said they spoke with someone – such as a mortgage adviser, a bank, or a family member – about mortgage protection insurance when taking out their mortgage. Despite this, just one in seven (16%) currently have income protection in place.
With Lifesearch you can review your level of cover and discuss your optons to ensure you have the right level of cover.
Without sufficient protection in place, mortgage holders would turn to various measures to keep up with their mortgage payments if faced with an income loss.
While 29% said they would reduce their non-essential spending, and 26% would request a mortgage payment holiday – others said they would resort to more drastic measures. Almost a fifth (19%) would borrow money from family or friends, while the same amount would sell valuables such as their car or jewellery. Concerningly, 15% said they would apply for Government support such as universal credit, 8% would try to take out a bank loan, and 19% would reduce their contributions to savings or their pension fund – putting their long-term financial security at risk.
Data from the research clearly shows a group of mortgage holders that is not just under-prepared – but vulnerable to financial shocks, particularly as many would be unable to make ends meet within weeks of losing income due to illness or injury.
Debbie Kennedy, CEO, 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 said:
“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.”
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April 29, 2025 
