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Over a third of UK homeowners have no form of protection

Over a third of people who purchased their mortgage direct from a lender have no protection policy in place, the latest research from Legal & General Mortgage Club has revealed.

The research – which included a survey of over 2,000 UK homeowners – highlighted that many consumers taking steps on the housing ladder without having a safety net in place, such as Life Insurance, Critical Illness Cover (CIC) or Income Protection.

Interestingly, 5% of respondents who hadn’t used an adviser didn’t even know if they had a policy, while 51% had taken out a life insurance policy – but the figures for CIC were even lower.


Despite figures from Cancer Research UK claiming that one in two people in the UK will be diagnosed with cancer in their lifetime, 17% of homeowners who had not taken advice had a CIC.

Another 17% said they had an Income Protection policy, despite Legal & General’s ­Deadline to Breadline research showing that people could last just 32 days on their savings if a long-term sickness meant they couldn’t work.

Those that went direct to a lender with their mortgage (35%) said their family’s financial security was the most important thing to protect when taking out a large financial commitment if they died. This was followed by 29% who said their biggest concern was their own or family’s financial security if they couldn’t work.

The study also found that more than three in five (62%) customers who had used a mortgage adviser had been recommend Life Insurance, a third (33%) cover against serious illnesses and 29% Income Protection.

With this research, Legal & General Mortgage Club aims to highlight the important role advisers play in mortgage applications, helping borrowers to find the right mortgage and protection.

Previous findings from the club showed that borrowers who used a mortgage adviser were also in favour of doing so again.

Nearly all (98%) described the support from their adviser as ‘valuable’, while 95% said they would recommend using a mortgage adviser to family or friends.

Kevin Roberts, director at Legal & General Mortgage Club, commented: “Good advice doesn’t just help borrowers to find the right mortgage, it’s also vital in recommending homeowners have the protection they really need to keep a roof over their heads should a loved one fall ill or die.”

“Last year, intermediaries were behind 70% of the sales in the Income Protection market alone and our research certainly shows that advisers are championing cover by having the important conversations that are so vital when it comes to this type of insurance.”

“We think advisers are absolutely critical when it comes to buying a home, whether it’s for a first-time buyer, a home mover or someone who wants to downsize,” he continued.

“From helping borrowers to navigate the thousands of products on the mortgage market to making sure they have protection in place to avoid a financial crisis in their time of need, good advice really can and is helping borrowers every step of the way.”


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