If illness or injury stopped you working, even for a few months, what would happen to the mortgage?
Most households have never had to test that scenario, and that is entirely understandable. Day to day life is busy, and when the mortgage is being paid each month it is easy to assume things would somehow be manageable.
But it is worth finding out where the weak points are, before you ever need to.
The income shock most people never price in
When people think about financial risk, they often focus on interest rates or house prices. Yet for many homeowners the real vulnerability is simpler: the monthly income that keeps everything moving.
If you are employed and become too unwell to work, you may be entitled to Statutory Sick Pay. That is currently £118.75 per week, subject to eligibility, for up to 28 weeks1.
Some employers offer more generous sick pay arrangements. Many do not.
Universal Credit may also be available depending on your circumstances. Currently, the standard monthly allowance is £400.14 for a single person aged 25 or over, and £628.10 for joint claimants where one or both are 25 or over. Additional elements may apply depending on children, housing costs or health conditions2.
This support can be genuinely helpful. But it is not designed to replace a typical salary.
So if your mortgage is £900, £1,200 or £1,500 a month, the sums become clear quickly. Even a short gap between what comes in and what must go out can create pressure, particularly once you add council tax, energy bills, food, travel, childcare, and the everyday costs that do not pause just because your payslip does.
The mortgage myth: “Surely there’s help?”
Many homeowners assume there is direct help with mortgage payments if the worst happens.
There is a scheme called Support for Mortgage Interest, known as SMI. But it is widely misunderstood.
SMI is not a benefit that pays your mortgage. It is a loan from the Government that can help towards the interest on eligible borrowing.
A few points are worth understanding clearly:
- It does not cover the capital repayment element of a standard repayment mortgage.
- It does not automatically match your actual mortgage rate. The amount is calculated using a government set standard interest rate, which as at February 2026 is 3.66 per cent3.
- Any SMI received must be repaid, with interest, usually when you sell or transfer ownership of your home, unless the loan is moved to another property.
- Eligibility depends on receiving certain qualifying benefits and meeting specific criteria. It is not automatic and may not be available to everyone.
SMI can reduce pressure in difficult circumstances. But it is not designed to maintain your previous income, or fully cover your monthly mortgage payment3.
Where protection fits, and what it actually does
This is where protection policies enter the conversation. For some people, they are a straightforward way of turning a financial “what if” into a plan.
Protection is not an investment. It is not savings. It is a contract designed to provide financial support if specific events occur, subject to the policy terms and conditions.
For most homeowners, protection tends to fall into three categories.
1) Income protection: keeping the bills paid
Income protection may pay a regular monthly benefit if you are unable to work due to illness or injury, after a chosen waiting period.
The aim is simple: it helps replace part of your income so the essentials can keep being paid. That can include the mortgage, but also the ordinary costs people forget to factor in, such as food, utilities, fuel, childcare, and minimum debt payments.
The detail that matters is the waiting period, because this is where the policy is designed to fit around your sick pay, savings and any other support you might have.
2) Critical illness cover: a lump sum at the point it matters
Critical illness cover may pay a lump sum if you are diagnosed with one of the serious conditions defined in the policy.
For some families, that lump sum is used to reduce the mortgage so the monthly payment becomes more manageable. For others, it is about creating breathing space to cover bills, adapt the home, or reduce working hours during recovery.
The key point is that it pays on diagnosis of specific conditions, based on the insurer’s definitions, rather than paying simply because you are off work.
3) Life insurance: protecting the home if the worst happens
Life insurance may pay out if you die during the policy term. For homeowners, it is often the policy most closely linked to the mortgage, but it is also the one people assume they already have.
In reality, the gaps tend to be common:
- The cover exists, but it is too small to make a meaningful difference to the mortgage or household costs.
- The term ends before the mortgage ends.
- It is linked to work benefits such as “death in service”, which can be valuable, but can change if you move jobs, reduce hours, or stop working.
- The type of cover does not match the mortgage. For example, a repayment mortgage usually reduces over time, whereas an interest only mortgage does not.
The practical question to ask is this: if you died, could your partner keep the mortgage paid and the household running without having to sell the property quickly?
For many families, life insurance is not about leaving a windfall. It is about making sure grief is not immediately followed by a forced financial decision.
A simple stress test you can do at home
You do not need a spreadsheet to get a clear picture of where you stand. Ask yourself:
- How many months could your savings cover the mortgage and essential bills?
- What would your employer actually pay if you were signed off work?
- What state support would you realistically qualify for, and when would it start?
- If you died, could your partner or family remain in the home without selling?
If the answers are uncertain, that uncertainty is the risk.
Often the biggest issue is not that people have no plan. It is that they have never checked whether the plan they assume exists would really hold up under pressure.
A matter of proportion, not scare stories
For some households, substantial savings, investments, or other income sources provide resilience. For others, particularly those early in their mortgage term, self employed, or with limited emergency funds, the margin for error can be surprisingly thin.
Protection should not be purchased out of fear. It should be considered carefully, understood fully, and reviewed in the context of your wider finances. The cover selected should meet a clear need and represent fair value, rather than becoming a collection of policies taken out and forgotten.
If you are unsure whether protection is appropriate, speaking to a regulated adviser can help you assess your options and understand the costs, benefits and limitations.
Your home is likely to be your largest ongoing financial commitment. Taking time to understand how it would be paid for if your income stopped is not pessimism.
It is planning.
References:
- GOV.UK (2026). Statutory Sick Pay (SSP). [online] GOV.UK. Available at: https://www.gov.uk/statutory-sick-pay [Accessed 24 Feb. 2026].
- GOV.UK (2026). Universal Credit. [online] GOV.UK. Available at: https://www.gov.uk/universal-credit/what-youll-get [Accessed 24 Feb. 2026].
- GOV.UK (2026). Support for Mortgage Interest (SMI). [online] GOV.UK. Available at: https://www.gov.uk/support-for-mortgage-interest/what-youll-get [Accessed 25 Feb. 2026].
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
All the information in this article is correct as of the publish date 26th February 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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