Protecting A Sole Buyers Mortgage And Income

The Clients

The client was purchasing a property in her sole name, with her partner living in the property but not included on the mortgage. As a result, she wanted to ensure that if anything happened to her, the property could be left mortgage-free to her partner.

She was also conscious that the mortgage payments were entirely reliant on her income, meaning any prolonged period off work due to illness could create financial pressure.

The Challenge

Because the client was the sole borrower, both the mortgage repayments and household finances depended entirely on her income.

Two key risks therefore needed to be addressed:

• Ensuring the mortgage would be cleared if the client passed away

• Providing income protection should she be unable to work due to illness or injury

The client also had employer sick pay, meaning any income protection policy needed to align with this arrangement to ensure cover began only when her sick pay ended.

The Solution

We structured a protection package covering both risks.

A decreasing life cover policy was arranged to match the mortgage balance of £330,000, ensuring the loan would be cleared in the event of the client’s death.

In addition, an income protection policy was arranged to provide a monthly benefit if the client were unable to work. As she had employer sick pay in place, the policy was structured with a three-month deferred period, allowing the cover to begin once her sick pay ended.

Key details of the cover arranged:

Life Cover

• Type: Decreasing Life Cover

• Cover Amount: £330,000

• Term: Matching the mortgage term

Income Protection

• Monthly Benefit: £3,500

• Deferred Period: 3 months (aligned with employer sick pay)

Total Protection Package Premium: £30.59 per month

The Outcome

The client now has a protection structure that ensures both the mortgage and her income are protected.

: Protecting a Sole Buyer’s Mortgage and IncomeIf she were to pass away, the mortgage would be cleared, allowing the property to pass to her partner without debt. Meanwhile, the income protection policy provides financial security should she be unable to work due to illness or injury, helping ensure mortgage payments and other commitments can continue to be met.