Young homeowners risk losing homes as thousands remain unprotected

Buying a home is often one of the biggest financial milestones in a person’s life. But for many young homeowners, the move can also come with an overlooked risk: not having the right protection in place to help cover mortgage payments if life changes unexpectedly.

Recent research highlights a gap in awareness and action among people aged 18 to 34—particularly those with mortgages—suggesting that some may be relying on hope rather than planning for the possibility of illness, injury, or a loss of income.

Low awareness of mortgage-related protection

Protection needs can be easy to misunderstand, especially when a mortgage is the main focus during the buying process. Yet the consequences of being under-protected can be serious.

The research suggests that only a minority of young mortgage holders say they know a lot about income protection. Income protection is designed to support regular outgoings if you’re unable to work due to illness or injury.

At the same time, many people appear to have incomplete cover—or none at all—across the main types of mortgage-related protection, including:

• Income protection (helping replace lost earnings)
• Life insurance (helping provide financial support if the worst happens)
• Critical illness cover (helping with a lump sum or benefit when diagnosed with certain conditions)

When these protections are missing, a temporary disruption can quickly become a longer-term financial strain.

The real-world risk: how quickly mortgage payments can become difficult

Mortgage payments are usually due every month, regardless of what’s happening with your health or employment. For young homeowners, the research suggests that many would struggle if they couldn’t work.

The key issue isn’t just the possibility of illness or injury—it’s the time lag between a problem starting and support becoming available. Statutory sick pay and employer sick pay can be limited in duration, and not everyone qualifies for the same level of support.

Without appropriate cover, even a period of reduced income can lead to:

• missed or reduced mortgage payments
• arrears building over time
• pressure on savings and other essential spending
• longer-term damage to financial standing

In other words, the risk isn’t theoretical. It can affect day-to-day ability to keep the home.

Why “I’ll manage somehow” can be a dangerous plan

When people think about coping with a sudden loss of income, many default to short-term measures rather than protection designed for that exact scenario.

The research points to common responses such as taking on extra work, drawing down savings, pausing pension contributions, or relying on government support. Those options may help in the short term, but they can also introduce new vulnerabilities—especially if the situation lasts longer than expected.

Relying on extra work may not be realistic if health is the cause of reduced earnings. Cutting back on savings or pension contributions can also create longer-term financial consequences.

A growing financial gap for under-35s

Experts warn that young homeowners can be particularly exposed because they often take on major commitments while their financial resilience is still developing. That includes people who may be:

• early in their careers
• more likely to change jobs
• balancing other costs alongside a mortgage
• less likely to have built up substantial savings buffers

If protection awareness and planning don’t keep pace with mortgage responsibility, the gap can widen.

What to review if you have a mortgage

While every situation is different, the underlying theme is consistent: mortgage protection should be reviewed as part of responsible homeownership—not treated as a one-off decision.

A practical review typically involves understanding:

• Whether you have cover at all for the risks most likely to affect your ability to pay
• Whether the cover matches your current circumstances, such as income, dependants, and mortgage balance
• Whether the protection would actually help if you couldn’t work for a period
• Whether your cover is still suitable after major life changes (job changes, health changes, family changes)

It’s also worth remembering that protection isn’t only about premiums—it’s about whether the policy terms would respond when you need it.

Mortgage payments and protection: planning for the unexpected

Missing mortgage payments can lead to serious consequences, including arrears and long-term financial impact. Having the right protection arrangements in place can help reduce the likelihood that an unexpected event becomes a housing crisis.

For young homeowners, the message is clear: if you’re relying on employer sick pay, savings, or government support alone, it may be worth reassessing whether your plan is robust enough.

Owning a home is a major achievement. With the right protection in place, it can also be a more secure one.