For Gen Z borrowers, this figure was 50%. This exposure is particularly staggering given that the younger generation already feel on the backfoot with homeownership.
In some cases, this impact on payments was not one-off. The research found that 7% of homeowners had missed multiple mortgage payments after being unable to work.
Borrowers lack safety net
A fifth of mortgage borrowers said they had no savings safety net.
With the average mortgage bill at least £1,000, households are under pressure to ensure a steady stream of income, especially in the event of a ‘health shock’.
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Despite the fact that 71% of borrowers claimed that they do have savings to fall back on, the bigger picture is less convincing. These savings are reported to not stretch beyond six months of payments.
For those who lack cash savings, 34% would turn to family members for support, and 24% would look to their partner.
Some 15% said they would consider taking on more debt through short-term loans.
But for some, any meaningful safety net is nonexistent.
A further 10% of borrowers said they did not have anyone to turn to, with 8% admitting they would continue to miss mortgage payments.
Borrowers misunderstand the importance of protection
As many as 9% of borrowers regretted not taking out insurance after facing financial difficulty or a health shock.
Whilst some borrowers expressed regret, others only considered insurance after the fact, with 8% admitting they considered protection once it was too late.
Hindsight around protection demonstrated that it continues to be overlooked by mortgage borrowers.
Some 8% of borrowers assumed they were already protected, while 6% of borrowers went so far as to say that they do not believe they will fall ill or suffer a serious accident.
Phil Jeynes, head of individual protection at MetLife UK, reiterated: “Protection is there to help provide a financial safety net when life does not go to plan.”
