Mortgage Protection: The Financial Safety Net Too Many Families are Missing

For millions of UK families, owning a home is the cornerstone of financial security. But what happens when life throws you a curveball – an illness, an injury, or even death? These are often the last things we would choose to talk or even think about, however, without a financial safety net in place, that very cornerstone could begin to crumble.

According to research in the 2025 HomeOwner Survey (1), 2.3 million UK mortgage holders have no protection insurance – no life cover, no income protection, no critical illness policy. That’s over a third of mortgage holders living on a financial knife-edge. Perhaps even more alarmingly, 46% say they’d struggle to pay their mortgage within six months of loss of income, with one in five facing hardship in just two months.

Why Protection Matters

A mortgage doesn’t pause when life does. Whether you’re a first-time buyer just starting out, a growing family that’s juggling everyday expenses, or an older homeowner who’s nearing retirement, the risk of not keeping up with mortgage payments is real.

Think about the current spending for a family each month – the cost of mortgage payments, the household bills, food costs, holidays, saving money – the list goes on.

What would you do if you suffered a sudden loss of income? If you were unable to work, if you developed a serious illness, or if you passed away?

If homeowners don’t have a large amount of savings to fall back on, it’s likely that if any of these scenarios were to happen that they and their families might find it difficult to pay some of those bills or be forced into making some cutbacks.

 As an example, leading provider Aviva underlines this with some sobering data(2):

• In 2024, Aviva paid out £1.33 billion in protection claims.
• 90.1% of income protection claims were successful, with mental health, musculoskeletal issues, and cancer as the top causes.
• 91.5% of critical illness claims were paid, averaging £71,989 per payout—often enough to clear a mortgage or cover treatment or private health costs.

These aren’t just numbers; they could be lifelines.

Building your financial safety net

Protection insurance isn’t one-size-fits-all. There are three main types of protection, a mix of which might be right depending on each family’s specific needs and requirements, what matters most to them and what their budget is:

The awareness gap

Despite the potential risks, many homeowners are unaware or are misinformed about the benefits of protection solutions:

• Only 15% of mortgage holders say they know a lot about income protection.
• Women and younger homeowners are less likely to have cover and are less familiar with options.
• Nearly 1 in 5 would resort to selling valuables or borrowing from their family if income stopped.

It’s time to talk about it

The protection of a mortgage should be as routine as the protection that homeowners already have in place for a pet, a phone, tech devices, or for other belongings protected against any unexpected cost.  Protecting yourself and your family against the financial impacts of illness, injury or death should be equally important.

And for homeowners: it’s time to ask the hard questions. If I can’t work tomorrow, could I still safeguard my home?

Final thoughts

A home is more than bricks and mortar – it’s a sanctuary, a legacy, a family’s future. Don’t leave it exposed to life’s uncertainties. A financial safety net isn’t just smart – it’s essential and gives peace of mind to homeowners and their families that they’re prepared for any of life’s unforeseen events.

If you’d like to find out more about protection for a mortgage, book a meeting with one of our Protection Advisers – simply email info@mmshull.co.uk and we’ll be in touch.

 1 HomeOwners Alliance 2025 HomeOwner Survey

2 Aviva 2025 Individual Protection Claims & Wellbeing Insights

The information contained within was correct at the time of publication but is subject to change.