- 80 - 81 High Street, Northallerton, DL7 8EG
Contact us today to find out how we can help you achieve financial clarity and certainty for your mortgage.
- 80 - 81 High Street, Northallerton, DL7 8EG
- 07388 515859
- dwight@oakvalefinancial.co.uk
MORTGAGE & INCOME PROTECTION
Income Protection Explained: Cover Your Mortgage If You Can't Work
Here’s a question worth asking yourself: if illness or an accident stopped you working next month, how long could you keep up your mortgage payments?
For most of us, the honest answer is “not as long as I’d like”. Your mortgage is probably the biggest regular commitment you have — and it doesn’t pause when your income does. That’s the gap income protection is designed to fill. Here’s how it works, in plain English.
What Income Protection actually is
Income protection is a type of insurance that could pay you a regular monthly income if you’re unable to work because of illness or injury. Instead of a one-off lump sum, it’s designed to replace a slice of your monthly pay — money that arrives while you focus on getting better, rather than on the bills.
A few things it’s worth knowing up front:
You choose a deferred period — how long you’d wait between stopping work and the benefit starting, from a few weeks to several months.
Policies typically pay a set share of your income, up to a cap, rather than your full salary.
Depending on the policy, payments can continue until you return to work or the policy ends.
Every policy is different, so treat this as a general guide — not personal advice.
Key Features of Income Protection
- Deferred Period: This is the waiting time between stopping work and receiving benefits, which can range from a few weeks to several months.
- Coverage Amount: Policies typically pay a set percentage of your income, up to a specified cap, rather than your full salary.
- Benefit Duration: Depending on the policy, payments can continue until you return to work or until the policy ends.
Why it matters when you have a mortgage (or rent)
A mortgage is a long-term promise. The risk is the gap: if your income stopped for six months, what would happen?
Missed mortgage payments can lead to arrears, a dented credit file and, in the worst case, losing your home. (Your home may be repossessed if you do not keep up repayments on your mortgage.) Protection exists to give you a monthly fallback, so a health setback doesn’t become a housing one.
Your landlord probably won’t be patient enough to wait months for missed rent payments either.
What it usually doesn’t cover
Just as important is knowing the limits. Most policies won’t pay out for pre-existing conditions, and standard income protection doesn’t cover redundancy — only policies that specifically include unemployment cover do. Some policies also exclude certain activities or conditions, so it’s worth reading the details rather than the headline.
That’s a reason to read the small print with someone who does this every day.
Who Should Consider Income Protection?
- Your mortgage or rent relies on a single income.
- Your employer's sick pay is limited or runs out quickly.
- You're self-employed. There's no occupational sick pay when you work for yourself — if you don't work, you don't earn.
- You're a first-time buyer stretching to make the numbers work. The mortgage works on paper, but there's little slack if income dips.
Expert Advice at Oakvale Financial
How does it differ from critical illness cover?
They do different jobs. Critical illness cover pays a one-off lump sum if you’re diagnosed with one of the specific conditions listed on the policy. Income protection pays a monthly income while you can’t work — whatever the cause, as long as it’s covered. Some households have one, some have both, and the right mix depends on your circumstances. Our mortgage protection advice page explains the options in more detail.
How Oakvale Financial can help
We’re mortgage advisers based on Northallerton High Street, supporting clients across North Yorkshire and beyond. Protection is part of the conversation we have with every mortgage client — not a hard sell at the end. We’ll look at your situation, talk through what you would and wouldn’t want cover to do, and compare options from across the market before explaining everything in plain English. There’s never any pressure.
Contact Us for Personalised Advice in Northallerton
If you’d like to know where you stand, book a call back and we’ll talk through your options — or read more about our mortgage advice first. No jargon, no pressure, and an honest answer either way.
Saving you time, stress & money with your mortgage.
- 80-81 High Street, Northallerton, DL7 8EG
- 07388 515859
- dwight@oakvalefinancial.co.uk