Almost half of UK landlords could not meet their payments within six months of losing their income. However, our latest survey conducted with the HomeOwners Alliance found that eight out of 10 (86%) do not have income security.
The security gap is not new, but it is growing rapidly. With the rising cost of living, high income volatility and increasing concerns about financial stability, millions of UK households are still exposed to unaffordable financial risks.
Research shows that more than a third of mortgage holders do not have life insurance, income protection or critical illness cover. Impressive isn’t just an underinsurance rate, that’s why you persist.
The protection market generally works well for people who already have insurance. The most difficult part is very early in the journey, and many customers never get properly engaged. For many, lack of knowledge, lack of access to advice, is the real first problem.
And that’s exactly where mortgage brokers come in.
Awareness before advice
Protection insurance is still often framed as an apologetic technical add-on – products, definitions and premiums – where most customers do not even understand the basics of the real risks they face, and what protection does.
Our research shows that if income stopped, almost half of mortgage holders would rely on spending cuts, paid holidays or family support – not on insurance. Many do not have a clear plan at all. This is not a deliberate avoidance; it is a misunderstanding.
In addition, our latest study2 found a large proportion of homeowners incorrectly believe that income protection does not cover mental health conditions. Others think that the self-employed don’t have access to it, or that only the primary beneficiary needs cover.
This is important, because we often try to deliver advice before customers really understand the problem they are trying to solve.
Mortgage brokers are uniquely positioned to change this, not by doing ‘more sales’, but by changing when and how security enters the conversation.
A mortgage is often the largest financial commitment a client will ever make. And it’s a time when vulnerability becomes more apparent: ‘what happens if your income stops?’ That one question, asked at the right time, does more to open a real conversation than any product brochure. When security is placed as part of the home ownership story, not as a bolt-on product, engagement changes.
Trust is real money
Another strong finding from our research is that trust and understanding are closely linked. Customers are more likely to engage with protection when it is explained in clear, everyday language and based on real-world outcomes, rather than policy jargon.
Mortgage brokers automatically do this when discussing affordability, mortgage term and risk. Extending that same defense is one of the most effective ways to close the gap.
Extending the mortgage risk warning
We already embrace the idea of a standard mortgage warning:
“Your home is at risk if you don’t keep paying.”
Here’s an idea. A natural and useful extension would be to assist signpost customers in what they can do about that risk. Here are steps you can take to reduce that risk.‘
Then, well-structured security talks – or clear, expert-backed targeting – can help customers build a real safety net where it matters most.
Income protection as a positive financial signal
Income protection is often classified as complex or niche. In fact, it protects the one thing that keeps the mortgage paid: income.
There is a growing tendency to view income protection as good financial behavior – a marker of resilience, planning and stability. Just as rental payment data is now recognized in credit checks, we would like to see protection play a role in how lenders assess risk and sustainability.
This is not about forcing products or distorting lending decisions. It’s about seeing good behavior and honesty. Borrowers who take steps to protect their income are arguably at lower risk over the life of the loan. This is especially important for small borrowers and renters who may not have built assets but have income to protect.
It’s not mandatory, but it’s inevitable
I do not believe that mandatory asset protection is the answer. But equally, it should be unthinkable for a loan discussion to end without a proper discussion about protection – either with a mortgage advisor or through clear, professional referrals.
I don’t believe this interferes with the loan process; it ends it. At LifeSearch, we have proven this through our partnership and building community lending groups.
The role of the salesperson has never been so important
It is the mortgage broker who sits down with their client – in person or online – and holds their full attention before a loan offer is made. No client should leave that conversation without understanding how their home can be protected if life doesn’t go according to plan.
Mortgage brokers, security professionals, lenders and insurers all influence the customer journey. When we understand each other’s messages, prioritize clarity over complexity, and focus on shared outcomes – better understanding, better decisions, better security – then trust grows.
The opportunity before us is significant. If we get this right, we just close the gap in the cover. We help people stay in their homes, protect their loved ones, and face the horrors of life with confidence.
That’s just not good for customers. It is good for traders. And it is good for the long-term health of this market.
Debbie Kennedy is the CEO of LifeSearch
