Report shows many borrowers lack income protection

May 8, 2025 by Alan

Borrowers

There are millions of people in the UK with a mortgage who have no form of income protection in place, according to a new piece of research that has just been published.

This research was carried out jointly by the HomeOwners Alliance and LifeSearch and the results make for striking reading. They show that 36% of people who have a mortgage do not have income protection, critical illness protection or life insurance. That adds up to approximately 2.34 million mortgage holders. People in that position could face financial catastrophe if the worst happens.

More than 500 people with a mortgage were surveyed for the research, which also laid bare the potential impacts of a lack of protection. Nearly half (46%) of them told the survey that they would lose the capacity to manage mortgage repayments after six months, should anything happen to their incomes. A further 21% said that they could only manage for two months.

Those are alarming findings, but they also present an opportunity for mortgage advisors. Offering guidance on the various protection products that are available could be a way for them to open up another income stream. That is important at a time when the purchase market has slowed down.

Talking to Mortgage Introducer, Debbie Kennedy from LifeSearch said:

“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.”

This is something that those with the CeMAP qualification should be thinking about when promoting their services.