Research by technology firm Intelliflo has highlighted that more than a third of brokers have concerns about the level of administration they'll have to complete after the implementation of the Mortgage Market Review (MMR).
There’s little doubt that advisers will find themselves under time pressure as they adjust to new processes and the increased traffic that MMR is likely to create. This is on top of the increased mortgage activity we’ve witnessed since the government introduced Help to Buy.
The good news is that mortgages and protection go hand in hand. The mortgage helps your clients buy their dream home while protection helps them to hang onto it, even if the unthinkable happens.
MMR asks advisers and clients to consider the long-term affordability of the mortgage.
That's where Bright Grey's protection menu could help. It lets you combine a range of covers in one plan
Having to ask your clients if they’re aware of any potential lifestyle changes in the next five years – getting married, having children, school fees, new jobs, or even divorce is the perfect opportunity to talk about the need for protection. It’s an ideal chance to point out that it’s not the things we're aware of that create the biggest problems – people usually plan for them – it’s the unexpected life changes that cause financial pressure. You can use this opportunity to paint the picture of life without protection in the event of one of these unexpected life changes. Despite widely publicised welfare reforms, many people will be unaware of just how limited state benefits now are and most won’t have thought about what their life would be like if they had to rely on them.
You can advise your clients on the importance of protecting the thing that keeps the money for those mortgage payments coming in – themselves! Without a regular salary coming in, because of critical illness or even long-term sickness, your clients could struggle to pay their bills and could face losing their home if they were unable to meet mortgage repayments.
Don't overlook the protection sale.
During this transition period, where the impact of the additional affordability assessments is still largely unknown, it’s important that the protection needs of your clients aren't overlooked. It's up to you to paint the pictures for clients that if life takes an unexpected turn, they could be left in a very vulnerable position without the right protection in place. Without that, their dream home could become a financial nightmare
That’s where Bright Grey’s protection menu could help. It lets you combine a range of covers in one plan and tailor solutions to your clients' budgets. That's a factor that will be really important through new affordability measures and your own stress-testing work. Being able to adjust the level of cover as your clients’ lives change can really show how your advice is future-proofing your clients' protection. And making sure that they can continue to pay for the home they've worked so hard to buy shows that you're focusing on the best consumer outcome possible – and that's key to an advised sale.