"Brokers have a tremendous opportunity to add value to their clients in terms of protecting the financial security of families and the time to do this is right now."
National brokerage Just Mortgages has warned there is a risk of a shortfall in protection cover for borrowers, stating there is a "moral imperative" for brokers to ensure clients are adequately protected.
The firm says that it is encouraging all brokers to be proactive in contacting existing clients to ensure that their protection needs are being met.
Since Covid homeowners have been impacted by rising interest rates and a cost-of-living crisis made up of increasing fuel and food costs. This has been exacerbated by a changing labour market and the threat of redundancies as firms come to terms with a split in the workforce of those office based and those working from home.
Just Mortgages believes that all of this brings massive uncertainly and risk to household budgets and future planning and now is the time for brokers to ensure clients are aware of their protection options.
John Phillips, national operations director at Just Mortgages, said: “Brokers have a tremendous opportunity to add value to their clients in terms of protecting the financial security of families and the time to do this is right now. Brokers need to have a plan in place to proactively approach borrowers and check protection cover and identify gaps by investing in outreach programmes via social media and local marketing. Many borrowers are unaware of the range of protection products that would be suitable for them and brokers can help them decide which types of cover would suit their needs and circumstances, ensuring that these fit within household budgets.
“Brokers should also grasp this opportunity to boost their earning potential as mortgage transaction levels drop and completions are taking longer and longer. Protection is all too often the poor cousin to mortgage advice, but it is increasingly significant and the provision of protection needs to be built into all client relationships.”
