Millions of UK homeowners are living on a financial tightrope, with almost two in five (39%) holding zero mortgage protection to cover their repayments if they find themselves unable to work, according to new research from MetLife UK, the employee benefits and protection provider.
Despite widespread concerns about financial resilience, just 33% of respondents said they definitely had mortgage protection, while 28% were uncertain if they had a policy in place.
MetLife’s research shows a clear gender divide when it comes to financial safety nets. Across the UK, well over two fifths (43%) of female mortgage holders have no protection in place, compared to a third (35%) of men.
A quarter (25%) of unprotected borrowers say they simply cannot afford cover, while 15% have had to prioritise day-to-day essentials like food, energy, and fuel.
12% of respondents said they were unaware that protection exists, while 11% said they simply didn’t get around to setting it up. Meanwhile, 9% were never offered cover when taking out their mortgage. Yet 30% of mortgage holders worry about getting into debt, while 28% are concerned about falling ill, losing their job or being able to keep up with mortgage payments.
Despite these concerns, 77% of advisers are seeing customers actively reduce levels of cover, or cancelling policies outright.
Phil Jeynes, Head of Individual Protection at MetLife UK, comments:
“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. 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. Having even a basic buffer in place, such as our EverydayProtect accident & health cover or MortgageSafe cover, is infinitely better than standing completely exposed if the worst was to happen."
