The Hidden Crisis in Mortgage Protection: Why Income Protection is No Longer Optional
Steve Davey, Protection Adviser at Cornerstone Finance
With 42% of mortgages now running past retirement age, the protection landscape is entering a period that will define the next few years for our sector. For mortgage advisers, this is not just a sales opportunity to manage – it’s a genuine chance to show what comprehensive advice really looks like.
The figures speak for themselves. Only 7% of UK adults hold income protection, yet illness is statistically more likely than death during a 30-year mortgage term. For many borrowers, that means living with the biggest financial risk of their mortgage journey completely unprotected. Some will face this reality when it’s too late. Others may never realise how exposed they truly are.
This presents an important moment. Under the FCA’s Consumer Duty rules, we have a chance not just to secure the mortgage but to really engage with our clients about foreseeable harm. It’s about moving from a transactional approach to one based on genuine duty of care and long-term protection.
The best time to address this isn’t at the end of a mortgage appointment – it’s at the beginning. The earlier an adviser introduces income protection, the more natural the conversation becomes. Early engagement opens up the discussion to cover more than just the mortgage rate. It demonstrates we’re thinking holistically about our clients’ financial security.
It’s understandable that some intermediaries have historically treated protection as an add-on. But when I speak to advisers, I always highlight the potential that’s missed when the conversation stops at life and critical illness cover. The most successful advisers I see are those who treat this as a chance to address a client’s complete risk profile.
We need to be curious. Has their employment situation changed? Are they self-employed without statutory sick pay? Has their protection cover kept pace with their mortgage commitments? These are not always easy conversations, but they are essential if we want to fulfil our regulatory obligations and build lasting relationships.
It’s important to recognise that many clients don’t understand income protection until someone takes the time to explain it. A good adviser will frame it properly: “If your income stopped tomorrow due to illness or injury, how would you meet your mortgage payments?” Whether it’s a first-time buyer who feels invincible or a self-employed client who assumes IP isn’t available, the adviser’s role is about identifying what’s possible and helping the client see the bigger picture.
The regulatory landscape is evolving, but it’s also full of opportunity. We have a real window here to do more than just arrange mortgages. We can show clients the full value of advice when it is proactive, comprehensive and focused on preventing foreseeable harm.
That’s how we turn mortgage transactions into trusted relationships. And that’s what will define success in this market – not just meeting Consumer Duty requirements but exceeding them through genuine client care.
