Thousands of young homeowners are putting themselves at risk of losing their homes because many have no insurance cover to protect against life’s unexpected shocks. New research has revealed that a large number of people aged 18 to 34 have little understanding of essential financial protection, and even fewer have taken steps to safeguard themselves1.
Low Awareness and Worrying Gaps in Cover
A recent survey of over 1,200 homeowners, including 500 with mortgages, shows that only 15 percent of young mortgage holders say they know a lot about income protection. This is particularly concerning, as this age group is often more likely to experience job changes, illness or sudden financial setbacks.
Even more worrying, nearly one in three young homeowners admitted they have no protection in place at all. This means they do not have life insurance, critical illness cover, or an income protection policy that could support them if they were unable to work. While more than half of those surveyed claim to have life insurance, experts believe the true figure is likely to be much lower in reality1.
How Would They Cope?
The risk for these homeowners is significant. Fourteen percent of those aged 18 to 34 said they would immediately struggle to pay their mortgage if illness or injury stopped them from working. More than half would face serious financial difficulties within just six months.
When asked how they would cope with a sudden loss of income, many young homeowners offered only short-term solutions. Nearly a third said they would try to take on extra work. Almost a quarter would cut back on savings or stop making pension contributions, putting their long-term financial security at risk. One in five would rely on government support such as Universal Credit, while more than one in ten would even consider taking out a bank loan1.
Experts Warn of a Growing Financial Gap
Industry experts have issued a warning that young homeowners are living on a financial tightrope. Many under-35s are taking on some of life’s biggest financial commitments without knowing what protection is available or how it works. Income protection is not just for older people or high earners. It is for anyone who depends on a regular income to pay the mortgage and cover essential costs. Without this safety net, a period of illness or injury could have devastating consequences.
Paula Higgins, chief executive of the HomeOwners Alliance, said that buying a home is a proud moment but it comes with real risks. She explained that many young buyers have already stretched their finances to get onto the property ladder, and that their financial resilience is often still developing. She called for greater support for young people so they can stay secure, especially as they take on the long-term responsibility of a mortgage1.
Don’t Wait Until It’s Too Late
Missing mortgage payments can quickly lead to arrears, repossession, and long-term damage to your credit record. Having insurance cover in place, whether income protection, life insurance, or critical illness cover, can provide the financial support needed to keep your home safe if the unexpected happens.
If you have a mortgage, now is the right time to look closely at your protection arrangements. Ask yourself whether you could continue to pay your mortgage if you were unable to work for six months. Do not assume that your employer’s sick pay will be enough, as statutory cover is limited and often does not last long. Talk to a qualified adviser about the type of cover you really need. Remember, the younger and healthier you are, the lower your premiums are likely to be.
Protect Your Home and Your Future
Owning your home is a major achievement, but it comes with responsibility. Do not risk losing your home because of illness or accident. Review your insurance today to make sure you and your loved ones are protected.
If you would like to discuss your options, or want a review of your insurance cover, contact our team for guidance and support.
References:
- IFA Magazine. (2025). Almost 1 in 3 young mortgage holders have no protection cover – LifeSearch and HomeOwners Alliance Available at: https://ifamagazine.com/almost-1-in-3-young-mortgage-holders-have-no-protection-cover-lifesearch-and-homeowners-alliance/ [Accessed 23 Jul. 2025].
All the information in this article is correct as of the publish date 31st July 2025. 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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