Two in every five homeowners in the UK do not hold protection insurance to cover their mortgage repayments if they were unable to work, according to MetLife UK.
Only a third of the 3,000 consumers surveyed have mortgage protection insurance, while a further 28% are uncertain if they have such a policy.
The research discovered that women are more at risk of not being able to repay their home loan if they could not work.
Almost half of women (43%) do not have their mortgage insured, compared to around a third (35%) of men.
A quarter of unprotected borrowers said that they cannot afford cover, while 15% prioritise paying for food and energy instead.
Meanwhile, 12% of mortgage holders are unaware that such protection cover exists, with a further 11% have setting a policy up on their to do list.
Another headline from the research is that 9% of consumers reported never being offered such cover when they arranged their mortgage.
Despite this, 30% of mortgage holders are worried about getting into debt, with 28% concerned about how they will re-pay the loan if they fall ill or lose their job.
Yet, MetLife reported that 77% of advisers have seen consumers reduce their level of cover or cancel their policies.
We get it
MetLife UK head of individual protection Phil Jeynes (pictured) said: “When mortgage bills soar, people often go through their bank statements with a highlighter looking for anything to cut and asking, ‘can we afford this?’ – we get it.
“Cancelling protection feels like an easy saving until life knocks you sideways,” he added. “But walking away from the exact safety net which protects your home and livelihood is a massive gamble.
“Before making the decision to cancel cover, look at your options – whether that’s checking for workplace benefits or tweaking your policy to bring down the monthly cost.”
