When mortgage rates go up, most of us focus on one thing: the monthly payment. But there’s another question that’s just as important — what would happen if you couldn’t pay it?
With rates now close to 6% on many new fixed deals, mortgages make up a bigger share of household budgets than they have for years. That makes protecting your income more important than ever.
Could You Cover Your Mortgage If You Couldn’t Work?
Ask yourself:
- How long could your savings cover your bills if your income stopped?
- How much sick pay would your employer actually give you?
- If you’re self-employed, what happens if you can’t work at all?
For many people, the honest answer is “not very long”. Statutory Sick Pay is much lower than most mortgage payments, and the self-employed generally don’t get sick pay at all.
What Types of Protection Are There?
Life insurance:
Pays out a lump sum if you die during the policy term, which can be used to pay off the mortgage so your family can stay in the home.
Critical illness cover:
Pays out a lump sum if you’re diagnosed with a specified serious illness covered by your policy. It can help clear or reduce your mortgage while you focus on getting better.
Income protection:
Pays you a regular monthly income if you can’t work due to illness or injury, until you return to work or the policy ends. It’s especially valuable for the self-employed and contractors.
Family income benefit:
Pays a regular monthly sum to your family if you die during the policy term — a budget-friendly way to replace lost income.
Isn’t It Expensive?
Often less than people expect. Cover can be tailored to your budget, and even a basic policy is better than none. The younger and healthier you are when you take it out, the more affordable it tends to be.
When Should I Review My Cover?
- When you buy a home or remortgage
- If your mortgage payments go up
- When you have children or your family changes
- If you become self-employed, change jobs or have changes in income
Let’s Chat
At The Mortgage Lodge, we don’t just help you get your mortgage — we help you protect it. We’ll look at what you already have, find any gaps and recommend cover that fits your life and your budget.
Get in touch today for a friendly review of your protection.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £750.
Figures quoted are correct at the time of writing (October 2026) and are for information only. This blog does not constitute personal advice.