·         Over 9 million people would struggle to keep up with rent or mortgage payments without their partner’s income

·         The average mortgage shortfall if one income stream was lost is £290 per month, while the average rental shortfall is £445 per month

·         Nearly half (44 per cent) risk potentially losing their home if their partner were to pass away

New research¹ from Direct Line Life Insurance reveals that millions of people in relationships across the UK would be unable to pay their rent or mortgage if anything were to happen to their partner. Two thirds (67 per cent) of those married, living as married or in a civil partnership in a property, where they split rent or a mortgage – around 9.2 million people across the UK - would struggle to keep up with their payments if their partner were to stop contributing towards the bills.

On average, partners split their home payments fairly equally², meaning that if one was to stop being able to pay their share, the cost for the other would be substantial. The average monthly mortgage repayment across the UK is £581, which is 18 per cent of the average disposable household income amount³. Should one person not be able to pay their share of the mortgage, the remaining partner would need to find an extra £291 per month to cover the remaining half of the mortgage and the overall cost would become 36 per cent of their disposable household income, a significant proportion which many would not be able to cope with.

For those renting, the average cost is even higher. With the average rent in the UK currently standing at £889 per month⁴, or 27 per cent of the disposable income per household. Should one person be left to cover the rent themselves, they would need to find an extra £445 per month, a staggering 54 per cent of their disposable household income.

Table one: Proportion of mortgage and rent payments for households across Great Britain

Source: Direct Line Life Insurance 2019

For nearly four million people (28 per cent), it would be impossible to find this extra money based on their income alone and they would immediately be unable to keep up with their home payments.

In fact, only around a fifth (22 per cent) would be able to continue paying their rent or mortgage without their partner’s contribution. While this rises slightly for men (27 per cent) and falls for women (19 per cent), it shows how reliant people are on their joint finances and how much they would struggle if something was to happen to their other half.

If the worst was to happen and their partner passed away for example, nearly half (44 per cent) of those with mortgage or rent payments – over eight million people – would potentially have to sell their home or move to somewhere with lower rental payments due to their reduced income. Despite this risk, over six million people (34 per cent) do not have any form of financial protection in place to help protect their home in the event of losing income.

The most common form of protection is life insurance, which just under half (46 per cent) of those with rent or mortgage payments have taken out, and death in service benefit (24 per cent). Just a fifth (21 per cent) have critical illness cover, which provides a tax-free lump sum to help pay for a mortgage, rent or debts in event of a serious illness and an even smaller proportion (13 per cent) are covered by income protection, which provides a regular income in event of illness or injury. Worryingly, there are currently over five million couples across the UK with a mortgage and no form of life or illness protection to support them in these circumstances.

Jane Morgan, Business Manager at Direct Line Life Insurance, commented: “It is understandable that we rely on the finances of both people in the relationship to pay our mortgage and rent. These are expensive outgoings which often need two incomes and it probably feels like we would never need to worry about paying their share.

“Unfortunately, it’s impossible to know what will happen in the future so it’s important to be prepared so that if the worst does happen you know you are able to carry on paying your bills and don’t have to worry about moving home. Nobody wants that kind of additional worry during an already very stressful time of their life and life insurance could offer important financial protection and peace of mind that you’d be able to stay in your home through a difficult time.”

Regional findings

On a regional basis, those living in London face the highest monthly mortgage costs, at £1,021 per month and would need to find an additional £510 per month should they lose their partner’s income. This means that the 20 per cent of their disposable income spent on their mortgage would rise to an alarming 44 per cent should they need to cover their mortgage costs themselves.

The South East (41 per cent), East (40 per cent) and South West (34 per cent) are also areas where the cost of paying a mortgage or rent alone would rise significantly. It is, therefore, unsurprising that the south of England also has the highest number of people who say that they may need to sell their home if their partner was to pass away. Over half (56 per cent) of people with mortgages or rent to pay in the South West stated that it would be a possibility, followed by the South East (52 per cent) and London (49 per cent).

Table two: Regional breakdown of mortgage payments for households

Source: Direct Line Life Insurance 2019

When it comes to paying rent, those in London and the South East have the highest monthly payments, at £1,611 and £1,035 respectively. In London, a month’s rental payment is 35 per cent of a household’s disposable income meaning if one partner should not be able to contribute, the other would need to find a huge £806 a month and the rental payment would become more than two thirds (69 per cent) of their monthly disposable income.

Table three: Regional breakdown of rent payments for households

Source: Direct Line Life Insurance 2019

     - ENDS -

Notes to Editors

¹  Research conducted by Opinium among a nationally representative sample of 2,007 UK

   adults between 23^rd – 26^th July 2019

²   On average survey respondents claimed to pay 56.3 per cent of the rent or mortgage themselves, with 42 per cent paid by their partner and 1.7 per cent paid by another person (such as a parent)

³   Average household disposable income calculated based on regional gross disposable household income (GDHI) data for the UK and regions published by the ONS on 22 May 2019. Calculation based on the assumption that there are two qualifying adults in the household

⁴   Average regional and UK rent courtesy of the HomeLet Rental Index, June 2019

For further information please contact:

Chelsey Wheeler

PR Manager

Direct Line Group

Tel: 01651 832 095

Email: [email protected]

Katie Ormrod

Citigate Dewe Rogerson

Tel: 0207 282 1023

Email: [email protected]

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel, pet and life insurance cover direct to customers by phone or on-line.

Direct Line life insurance policies are underwritten by Legal & General, registered office: One Coleman Street, London EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 117659. You can check the FCA register at www.fca.org.uk/register or call the FCA on 0800 111 6768. Legal & General will introduce customers who select the Funeral Benefit Option to Dignity Funeral Services, who are members of the National Association of Funeral Directors.

Customers can find out more about Direct Line products or get a quote by calling 0800 145 5522 or visiting www.directline.com/life-cover