For most people, their mortgage is their largest monthly financial commitment. However, few take the time to consider what might happen if they were suddenly unable to work due to illness or injury.
With rising household costs and increasing NHS waiting times, now is an ideal time to ask a simple but important question: could you still pay your mortgage if your income stopped for a few weeks or months?
Statutory Sick Pay: How Much Will You Actually Receive?
If you are employed and become too unwell to work, you may be entitled to Statutory Sick Pay (SSP). This is paid by your employer, but only at a basic rate.
As of the latest figures, SSP is £118.75 per week, and it is only paid for a maximum of 28 weeks. You must earn at least £123 per week (before tax) to qualify, and it is not paid for the first three days of absence unless your employer offers enhanced sick pay1.
To put it plainly, £118.75 per week is less than £480 per month—an amount unlikely to cover even the most modest mortgage payments.
What If You Are Self-Employed?
If you are self-employed, the situation is even more stark. You are not entitled to Statutory Sick Pay at all. This means that if you cannot work, you will not receive any income from the state, and you will be solely responsible for maintaining your mortgage and other living expenses.
Why This Matters for Mortgage Holders
If your income stops suddenly, even a short period off work can put real pressure on your finances. After a few weeks without pay, many people are forced to dip into savings, borrow from family, or rely on credit. After a few months, mortgage arrears, credit problems, or even repossession may become a very real risk.
It is essential that anyone with a mortgage considers how they would cope financially if they were unable to work for a period of time due to illness or injury.
How Can You Protect Yourself?
There are two main types of protection policies designed to support your income and help cover your mortgage if you become unwell:
1. Income Protection Insurance
This type of policy pays you a monthly income if you are unable to work due to illness or injury.
You can choose a “deferred period” (for example, 4 weeks, 8 weeks, or 3 months), after which the policy begins paying out. Payments continue either until you recover, retire, or the policy term ends.
Income protection is ideal for covering your mortgage payments and general living costs during a period of ill health.
2. Critical Illness Cover
This policy pays a tax-free lump sum if you are diagnosed with a specified critical illness such as cancer, heart attack, or stroke.
The money can be used to repay your mortgage in full, adapt your home, or simply reduce financial pressure during recovery.
Many people choose to combine both types of policy to ensure short-term income support and longer-term security.
Do You Already Have Cover? It May Be Time to Review It
Even if you already have protection in place, it is worth reviewing it regularly. Your mortgage may have changed, your income may have increased, or you may have started a family since taking it out. These changes could leave you underinsured.
Likewise, if you have sick pay from work, it is important to understand how long that support would last and whether it would be enough to cover all of your commitments.
Protection Offers Peace of Mind
No one plans to become ill or injured—but if it happens, the last thing you want to worry about is how to keep up with your mortgage payments.
Having the right protection in place gives you and your family peace of mind. It ensures that, should the unexpected occur, you can focus on recovery—not financial stress.
If you would like to review your current protection arrangements, or find out what options are available, we would be happy to help.
Reference:
- Gov.uk (2025). Statutory Sick Pay (SSP) Available at: https://www.gov.uk/statutory-sick-pay [Accessed 23 Apr. 2025].
All the information in this article is correct as of the publish date 27th March 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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