LV= has warned that the highest number of house-buyers in seven years means that many people will be depleting their savings and may be in need of income protection.
The Financial Conduct Authority will not begin testing firms' Mortgage Market Review processes until later in the year to allow for a "period of adjustment" while lenders and brokers get used to the new regime.
Customers must be made aware of the need for protection policies as the mortgage market has begun to show significant signs of recovery, Friends Life has said.
The Financial Conduct Authority (FCA) is increasingly turning its focus to individual mortgage products and more intervention in the market is likely, according to Deloitte.
Deputy governor for Monetary Policy at the Bank of England Charlie Bean has said lower inflation next year should both support the mortgage market and consumer spending.