Start Strong: Financial protection advice for First-Time Buyers.

Buying your first home is a huge milestone – and often one of the most exciting (and expensive) steps you’ll take in your life. Amid the joy of picking out furniture and choosing paint colours, it’s easy to overlook something just as important: protecting your new home and your financial future.  As a first-time buyer, securing the right protection policies isn’t just about peace of mind – it’s about making sure you and your loved ones are financially safeguarded, whatever life throws your way.

Why is protection important for first-time buyers?

Getting on the property ladder often involves stretching your finances to cover deposits, fees, and monthly mortgage payments. But what would happen if your income suddenly stopped due to illness or injury? Or if you passed away unexpectedly – would your family be able to manage the mortgage without you?  That’s where financial protection comes in. It acts as a safety net, ensuring you can keep your home and maintain your lifestyle if things don’t go to plan.

Key types of protection to consider

1. Life Insurance
If you die while still owing money on your mortgage, life insurance can ensure your loved ones aren’t left with the debt. For many first-time buyers, a decreasing term life insurance policy is a popular choice – it’s designed to reduce over time in line with your mortgage balance.
Why it matters: It ensures your mortgage can be repaid in full, so your home remains with your family or partner, free from financial strain.

2. Critical Illness Cover
This pays out a tax-free lump sum if you're diagnosed with a serious illness such as cancer, stroke, or heart disease. It can be added to a life insurance policy or taken as standalone cover.
Why it matters: It helps you cover mortgage payments, household bills, or private medical costs while you focus on recovery.

3. Income Protection
If you're unable to work due to illness or injury, income protection can pay you a regular monthly amount – typically a percentage of your salary – until you return to work or the policy ends.
Why it matters: As a first-time buyer, you may not have significant savings or access to sick pay beyond the basic statutory allowance. Income protection helps cover the bills when you can’t work.  For new buyers purchasing their first property alone, this is perhaps the most important protection policy to consider.

4. Buildings & Contents Insurance
Virtually all mortgage lenders require buildings insurance as a condition of the loan. It covers the structure of your property against events like fire, flood, or storm damage. Contents insurance, while optional, protects your personal belongings inside the home.
Why it matters: Your home is likely your biggest financial commitment – it’s essential to protect it from unexpected events.

When should you take out protection?

Ideally, your protection plan should be in place before you complete on your new home. That way, you’re covered from day one. But it’s never too late to review your options, even after you’ve moved in.

Protection tailored to you

There is no ‘one-size-fits-all’ approach to protection. The right solution depends on your mortgage, income, family circumstances and future plans. As experienced mortgage advisers, we’ll take the time to understand your needs and build a personalised protection strategy to suit your budget.

Buying your first home is a major investment – and protecting it is just as important as owning it. With the right advice and cover in place, you can enjoy your new home knowing that you’ve taken a smart step toward financial security.

We’re here to guide you every step of the way. Speak to us today for tailored advice on protecting your home, your income and your future.

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you seek mortgage advice from a regulated mortgage adviser before making any mortgage decisions.