Young Homeowners Vulnerable

A new study has found nearly a third of young UK mortgage holders have no protection cover, leaving them financially vulnerable if their income suddenly stops. The research surveyed more than 1,200 homeowners aged 18 to 34, including 500 with mortgages. Among those surveyed, only 15% of young homeowners said they knew a lot about income protection and just one in three had life insurance or critical illness cover.

Short-term fixes, long-term risks

When asked how they would cope with a sudden loss of income, 14% said they would immediately struggle to meet their mortgage payments if they lost their income. A further 57% said they would face financial difficulty within six months. To make up for the income shortfall, 29% of respondents said they would try to take on extra work. Others would cut savings or pension contributions (23%), apply for government support like Universal Credit (21%), or consider a bank loan (12%).

The report warns these are short-term solutions that could lead to greater financial strain later on. The younger generation is particularly exposed to more job uncertainty and cost-of-living pressures, making long-term planning all the more essential.

High stakes for first-time buyers

Paula Higgins, CEO of HomeOwners Alliance, expressed her concerns, highlighting the specific risks faced by younger buyers, “We need to do more to support young people in staying financially secure, especially as they take on the long-term responsibility of a mortgage. Ensuring they have the tools, knowledge, and support to weather life’s ups and downs is essential to helping them hold onto their homes and build a stable future.”

A growing awareness – but not across all products

While the findings point to an urgent need for education and better access to protection, there are signs that awareness is starting to improve. Separate research from Swiss Re reveals income protection sales have increased by 18% year-on-year. However, sales of other types of cover, including life insurance and critical illness, have declined.

The message is clear - there’s an urgent need to close this awareness gap. That means clearer advice, better signposting and conversations about protection starting earlier – so that young homeowners aren’t left exposed.

Don’t wait for a crisis to realise what’s missing. Speak to us today about protection insurance - because securing your income means safeguarding your home, your future and your peace of mind.

Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply

Source:

https://www.yourmoney.com/mortgages/nearly-a-third-of-young-mortgage-holders-have-no-protection/

https://www.ftadviser.com/critical-illness/2025/6/2/nearly-a-third-of-young-mortgage-holders-do-not-have-protection/