When your mortgage deal comes to an end, most people focus on securing the best new rate. However, remortgaging is also the perfect time to step back and look at the bigger picture. It is not only about lowering your monthly repayments, it is also about ensuring that your financial safety net continues to protect you and your family.
Life Has a Way of Changing
A great deal can change in just a few years. You might have got married, welcomed a child, moved jobs or even started working for yourself. Each of these milestones alters your financial responsibilities, and with them, the type and level of protection you may require.
For example, the life insurance policy you arranged when you first bought your home may have been set to match the mortgage balance at the time. If you have since borrowed more or extended the term of your loan when remortgaging, your old cover may now leave you short of what you actually need.
Likewise, income protection that once seemed adequate may no longer reflect your current earnings or expenses. If you have moved employer, changed your contract type or now rely on variable income, you could be more vulnerable to a sudden drop in household finances if illness or injury were to stop you working.
Even your buildings and contents insurance may be out of date. Many households underestimate the value of their possessions. A few years of new furniture, technology and home improvements can quickly add thousands of pounds that need to be reflected in your cover.
The Hidden Risk of Protection Gaps
Research shows that 12 million households in the UK are under-protected1. This means that if the unexpected were to happen such as a serious illness, a period out of work or even a bereavement, families could find themselves unable to maintain mortgage payments or keep up their standard of living.
Without the right protection in place:
- A surviving partner could face the mortgage alone, putting the family home at risk.
- An accident or long-term illness could leave the household with only statutory sick pay to rely on.
- A burglary, flood or fire could cause significant financial loss if buildings and contents cover is not sufficient.
Why Remortgaging Is the Perfect Time to Review
When you remortgage, you are already reviewing your finances and long-term plans. This makes it the ideal moment to consider whether your protection arrangements still do the job you need them to.
A review at this stage helps to ensure that:
- Life insurance reflects your outstanding mortgage balance and provides enough to safeguard your family’s financial wellbeing.
- Income protection is aligned to your current salary, lifestyle and employer benefits.
- Buildings and contents insurance accurately represents the true value of your home and possessions today.
It is not only about identifying gaps. A review can also uncover opportunities to improve cover or even reduce costs. Many households discover that by updating or switching policies, they can increase their level of protection and lower their premiums at the same time.
A Real-World Example
Imagine a couple who originally arranged £150,000 of life cover when they first bought their home. A decade later, they have increased their mortgage to £200,000 in order to pay for a loft conversion. If their cover had not been reviewed, their family would face a £50,000 shortfall in the event of a claim. A simple review during remortgaging would realign their protection with their mortgage, ensuring their home and family remain secure.
Source:
- MoneySuperMarket (2024). Two thirds of UK households underinsured as inflation causes replacement costs to soar. Available at: https://www.moneysupermarket.com/news/uk-households-underinsured/ [Accessed 22 Aug. 2025].
All the information in this article is correct as of the publish date 28th August 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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