Millions of UK mortgage holders are just one health shock away from missing a payment according to new research from protection and employee benefits provider MetLife UK.
More than a quarter (28%) of homeowners have already fallen into financial difficulty resulting in them missing a mortgage payment due to illness or injury.
In many cases, the impact is not a one-off. One in 14 (7%) say they have missed mortgage payments multiple times after being unable to work - highlighting how quickly financial pressure can spiral.
The crisis is most stark among younger borrowers. Half of Gen Z mortgage holders (50%) report they have already missed payments as a result of illness or injury, pointing to a generation particularly exposed to income shocks.
With the typical mortgage bill now exceeding £1,000 a month, pressure on household finances is high and raises the stakes if income suddenly stops.
While 71% of mortgage holders say they have savings to fall back on, the reality is far less reassuring. On average, these savings would last just six months - and for many, far less. One in five (20%) have no savings at all, leaving them with no buffer from day one.
When the money runs out, most are forced to rely on others. A third (34%) would turn to family, and a quarter (24%) to a partner. Just 17% say they would rely on insurance, while 15% would consider taking on more debt through short-term loans. Worryingly, one in 10 (10%) say they have no one to turn to, and 8% admit they would simply miss mortgage payments.
The research also exposes a sense of hindsight and misunderstanding around protection. Nearly one in 10 (9%) say they regret not taking out cover after experiencing illness or loss of income, while 8% assumed they were already protected when they were not. A similar proportion (8%) admit they only think about protection once it is too late, and 6% believe they simply will not fall ill or suffer a serious accident.
The findings lay bare a stark reality: for many households, a single accident or illness could trigger an immediate financial crisis - yet protection is still too often overlooked until the consequences hit.
Phil Jeynes, Head of Individual Protection at MetLife UK, comments: “Homeowning Brits are facing a perfect storm of higher-for-longer rates, sticky inflation and economic uncertainty with ongoing geopolitical conflict and disruption to global energy markets.
“When illness or injury stops income, we see how quickly mortgage payments can become a struggle, with many relying on limited savings or family support. Protection is there to help provide a financial safety net when life doesn’t go to plan.”
“MetLife UK’s MortgageSafe is a simple mortgage protection solution designed to help homeowners protect their mortgage repayments if they are unable to work due to accident or illness. The policy pays a monthly benefit towards mortgage costs, helping cover some or all repayments for either 12 or 24 months, depending on the level of cover selected. Available to both new and existing homeowners. MortgageSafe offers three levels of cover to suit different lifestyles, health profiles and mortgage commitments, helping advisers tailor protection more closely to client needs.
