Two in five mortgage holders have no protection policy – MetLife
Almost two in five (39%) UK mortgage holders have no mortgage protection policy in place to cover them if they were unable to work.
The latest research from MetLife UK described millions of homeowners as “living on a financial tightrope”.
Just 33% of respondents said they definitely had mortgage protection, while 28% were uncertain if they had a policy in place.
Protection de-prioritised
A quarter of unprotected borrowers said they simply cannot afford cover, while 15% have had to prioritise day-to-day essentials like food, energy, and fuel. For 12% of respondents, they were unaware that protection exists. Furthermore, 9% said they were never offered cover when taking out their mortgage.
The Association of Mortgage Intermediaries (AMI) has long called for action to close the protection gap and is working with the Financial Conduct Authority (FCA) to help develop a more holistic advice model for advisers.
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MetLife said 77% of advisers saw customers actively reduce levels of cover or cancelling policies outright.
Phil Jeynes, head of individual protection at MetLife UK, commented: “Cancelling protection feels like an easy saving until life knocks you sideways. But walking away from the exact safety net [that] protects your home and livelihood is a massive gamble.”
He added: “Having even a basic buffer in place… is infinitely better than standing completely exposed if the worst was to happen.”
