More than a third of UK mortgage holders do not have protection cover, according to research from LifeSearch and HomeOwners Alliance.
The research of more than 500 mortgage holders in the UK found that 36% currently have no form of life insurance, income protection, or critical illness cover.
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.
More than 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.
The research also found 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 cut non-essential spending, and 26% would request a mortgage payment holiday – others said they would resort to more drastic measures.
Almost a fifth (19%) said they would borrow money from family or friends, while the same amount would sell valuables such as their car or jewellery.
And around 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.
Debbie Kennedy, CEO at LifeSearch, (pictured) 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, added: “These findings should serve as a wake-up call.
“It’s deeply concerning that over two 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.”
