According to research from MetLife, which surveyed around 2,000 homeowners or those currently buying a property, 42 per cent said they had no savings to cover payments if illness or injury stopped them from working.
The research also found that one in five respondents said they had missed one mortgage payment due to illness or injury.
Around one in 10 respondents said that with no savings they had no one to turn to pay the mortgage and 15 per cent said they would take out a short term loan.
Over a third, 37 per cent, said that family would be their first port of call, whilst 18 per cent said they would use insurance to cover mortgage payments.
MetLife said that this highlighted the need to help consumers understand affordable insurance options and why they are important.
The company also noted that the lack of financial protection or buffer along with the fact the average mortgage term had grown to 30 years, and the average age being mortgage free had risen to 59, also raised the important of insurance protection.
Richard Horner, head of individual protection at MetLife UK, said that longer mortgage terms and long-term sickness leave becoming more commonplace showed that it was “crucial that families and individuals are not putting their homes at increased risk.
He explained: “The misconception that mortgage protection is expensive is preventing people from accessing what is an accessible and affordable form of insurance. Flexible plans like MortgageSafe (MetLife’s product) work out at less than the price of one takeaway coffee a week.
“Through this product, mortgage payments are covered if illness or injury keeps people off work, providing both a safety net to fall back on and additional peace of mind.”
Horner continued that as people reviewed their outgoings it was an opportunity to “identify any gaps that may make them financially very vulnerable”.
“Cost effective and valuable cover really can provide a safety net and peace of mind,” he concluded.
