why mortgage brokers are central to the solution – Mortgage Strategy

Almost half of UK mortgage holders would struggle to meet their payments within six months of losing their income. Yet our recent research conducted with HomeOwners Alliance found that eight in 10 (86%) have no income protection in place.

The protection gap is not new, but it is becoming more urgent. With rising living costs, greater income volatility and increased anxiety about financial resilience, millions of UK households remain exposed to financial shocks they could not absorb.

The research shows that more than a third of mortgage holders have no life insurance, income protection or critical illness cover. What’s striking isn’t just the scale of under‑insurance, it’s why it persists.

The protection market generally works well for people who already have cover.

Where it struggles is much earlier in the journey, with the many customers who never properly engage at all. For too many, lack of awareness, not lack of access to advice, is the real starting problem.

And that’s exactly where mortgage brokers come in.

Awareness before advice

Protection insurance is still too often framed as an apologetic technical add‑on – products, definitions and premiums – when many customers don’t even understand the basics of the real risks they face, nor what protection does.

Our research shows if income stopped, nearly half of mortgage holders would rely on cutting back spending, payment holidays or family support – not on insurance. Many have no clear plan at all. This is not wilful avoidance; it is misunderstanding.

Furthermore, our latest study2 found a significant proportion of homeowners wrongly believe income protection doesn’t cover mental health conditions.

Others assume the self‑employed can’t access it, or that only the main earner needs cover.

This matters, because we are often trying to deliver advice before customers truly understand the problem they are trying to solve.

Mortgage brokers are uniquely placed to change this, not by doing ‘more selling’, but by changing when and how protection enters the conversation.

A mortgage is usually the biggest financial commitment a client will ever make. It is also the moment when vulnerability becomes most obvious: ‘what happens if your income stops?’ That single question, asked at the right moment, does more to open a real conversation than any product brochure. When protection is positioned as part of the home‑ownership story, not as a bolt‑on product, engagement changes.

Trust is the real currency

One of the strongest findings from our research is that trust and understanding are closely linked. Customers are far more likely to engage with protection when it’s explained in clear, everyday language and grounded in real‑world outcomes, rather than policy jargon.

Mortgage brokers already do this instinctively when discussing affordability, mortgage term and risk.

Extending that same approach to protection is one of the most effective ways to close the gap.

Extending the mortgage risk warning

We already accept the logic of the standard mortgage warning:
“Your home is at risk if you do not keep up repayments.”

Here’s an idea. A natural and helpful extension would be to help signpost customers to  what they can do about that risk. ‘Here are the steps you can take to reduce that risk.‘

Then, well‑structured protection conversations – or clear, supported signposting to a specialist – can help customers create a genuine safety net for when it matters most.

Income protection as a positive financial signal

Income protection is often positioned as complex or niche. In reality, it protects the single thing that keeps a mortgage paid: income.

There is a growing case to view income protection as a positive financial behaviour – a marker of resilience, planning and stability. Just as rental payment data is now recognised in credit assessments, we would like to see protection playing a role in how lenders assess risk and sustainability.

This is not about forcing products or distorting lending decisions.

It is about recognising sensible and responsible behaviour. Borrowers who take steps to protect their income are arguably lower risk over the life of a mortgage. This is highly relevant for younger borrowers and renters who may not yet have built up assets but do have income to protect.

Not compulsory, but unavoidable

I do not believe compulsory mortgage protection is the answer. But equally, it should be unthinkable for a mortgage conversation to end without a proper discussion about protection – either with the mortgage adviser or through clear, supported signposting to a specialist.

I don’t believe this is distracting from the mortgage journey; it completes it.

At LifeSearch, we’ve proven this through our relationships with building society lending teams.

The broker’s role has never mattered more

It is the mortgage broker who sits with their client – in person or online – holding their full attention before a mortgage offer is issued. No client should leave that conversation without understanding how their home would be protected if life doesn’t go to plan.

Mortgage brokers, protection specialists, lenders and insurers all influence the customer journey. When we align on messaging, prioritise clarity over complexity, and focus on shared outcomes – better understanding, better decisions, better protection – then trust grows.

The opportunity in front of us is significant. If we get this right, we don’t just close a gap in cover.

We help people stay in their homes, protect their loved ones, and withstand life’s shocks with confidence.

That’s not just good for customers. It’s good for brokers. And it’s good for the long-term health of this market.

Debbie Kennedy is chief executive of LifeSearch