Beating the January blues!
- Sales of mortgages over 30-years increase 13%: With consumers looking ever closer at their bottom line it seems the increase in interest rates has led more homeowners to look at these much longer-term mortgages as a way of keeping their monthly mortgage payments affordable. Finances are always a fine balancing act though and the worry is that some borrowers haven’t fully understood the potential impact 30-40-year mortgages could have on their long-term finances. There will be quite an additional amount in interest if rates rise. Something to think about anyway.
- Adverse credit customers increasingly seeking broker advice; With more and more stories of people getting advice from social media and not trusting financial experts it comes as good news that Pepper Money Specialist Lending Study has found that of those with adverse credit in the last three years (and planning to buy a property in the next 12 months), 58% (that is nearly 6 in 10 people) say they would speak to a mortgage broker. This is up from 24% last year. Seems the tides are changing.
- Landlords set up record limited companies in 2023; In a world where rent is high and pressures in the buy-to-let market continues to grow, a glimmer of hope shows the growth in the record number of limited companies that have been set up has been driven mostly by existing landlords moving properties into a corporate structure to shelter themselves from higher interest rates. It isn’t the magic fix we need in this market but slightly lower mortgage rates in 2024 should alleviate some of these pressures and take some of the heat out of the rental market.
- Access the experts: The Right Mortgage & Protection Network has access to a range of experts in their fields, we can connect you to them through our events, online webinars and roadshows. Book some time in your diary for one such event: Talk to the Swansea Building Society (AKA the mortgage industry’s best kept secret) about a mortgage case: If you are looking for a lender lending in England and Wales with a personal, tailored, common-sense approach to lending, Swansea Building Society are the lender to speak to. With no credit scoring and all cases manually underwritten, they are able to look at cases which are more quirky and niche and which require a human to look at them with no ‘computer says no’ mentality. Their front line mortgage managers have years of experience of dealing with more complex cases and will be able to structure a case for you and your clients.
Book now to join our virtual event.
Have a little look at the products from our providers to move us nicely into February.
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Anita White
Head of Lender Relationships
2024 the year to leap into Equity Release
Many of you know that last year was turbulent in Later Life Lending, however we are already at a flying start with rates sitting at the low 5%!!
We also successfully held our first Coffee Break of the year for our specialists where we delved into Lead Generation and what goals to set in the year ahead.
Make sure to join us for the next Coffee Break on the Tuesday 6th February for our session if you are a equity release specialist.
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Victoria Clark
Head of Equity Release
Navigating complex insurance cases: Tools, strategies, and alternative solutions for clients with challenging medical histories
Occasionally, we encounter challenging cases where clients have faced significant medical issues. Our primary goal is to assist. Determining suitable coverage options may require thorough research, especially in severe cases. The process can be daunting, but is it truly insurmountable? Where does one begin? A tool I find immensely valuable is Underwrite Me. Similar to Solution Builder, it allows you to input client details and policy needs, but it goes a step further by incorporating the client’s medical history, like with a policy application. The resulting quotes include any applicable loadings, indications of whether further underwriting is necessary, and details on the need for GP reports or exclusions. With eight insurers on the panel, it may not match Solution Builder’s extensive options, but it provides a streamlined approach, saving time on extensive calls. Additionally, it is useful to look at Guardian Qi tool, and Vitality also provide Spectra. These tools are utilised by their pre-sales underwriting teams, so you have the same information at your fingertips, meaning no lengthy calls and being on hold to the insurers.
For clients with complex medical histories, The Exeter’s ‘Real Life’ policy, designed specifically for such cases with potential loadings up to 600%, remember it doesn’t quote on portals so you need to go direct to them. Communicating directly with their underwriters allows for a thorough discussion of medical issues and identification of additional information that maybe required from the client.
When standard term assurance policies are not viable, alternatives exist. Hive provides a critical illness and life policy without medical questions, excluding pre-existing conditions from the last 10 years. While not as comprehensive as traditional critical illness policies, it offers guaranteed acceptance for individuals unable to secure standard cover due to medical issues.
National Friendly offers an accident-only income protection policy covering up to 70% of gross earnings, excluding illness. It’s a solid choice for those ineligible for standard cover, particularly those in manual or driving-intensive roles.
MetLife is gaining prominence, with their Everyday Protect Policy catering to individuals engaged in activities like horse riding, motorcycling, and sports. Though non-underwritten, it suits clients struggling to secure standard policies. Besides accident benefits, MetLife includes an illness-related death benefit, hospitalization coverage for any illness (even pre-existing), and extra benefits like ‘GP24,’ providing video GP calls, advice, prescriptions, second medical opinions, and a symptom checker tool. Don’t forget their Mortgage Safe policy generally only looks back at 12 months of medical history and can provide a benefit of 110% of their mortgage payment.
Guaranteed over 50s life policies are available from various providers. While they might not be perceived as cost-effective for healthy individuals, they remain a crucial option for those with limited alternatives.
Engaging in meaningful conversations with clients, understanding their priorities, and illustrating key features of available policies empowers them to make informed decisions, fostering a collaborative approach to purchasing rather than a traditional sales transaction.
At The Right Mortgage, our extensive product offerings ensure that there is a fitting policy for every individual. No client should be told that obtaining coverage is not possible. Consider taking a proactive approach by speaking with clients where placing cover proved challenging. Offer a brief review, explaining you have some new possibilities; you will have interested clients.
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Amanda Wilson
Company Director
Kickstarting our 2024 in style!
We hit the ground running in January with our first coffee morning of the year. We had Andrew Bond from WPA attend our session and talk us through their product offering for clients looking to take out individual policies. This was followed on by Laurie Diiorio from Medicash, who went through the various benefits available, through their cash plans.
If you missed out, we have links to our recorded sessions which will earn you CPD time:
PMI Coffee Morning Wednesday 10th January Catch up.
Key Dates for your diary:
Put a note in your diary to join us for our next coffee morning session on Tuesday 14th February, where we will be having April International and Health Shield presenting on the day. Don’t forget to wear red to show your love for PMI on Valentines day!
We also launched an area for ‘ongoing development’ on the adviser site following feedback from you asking for a central place for materials in this ever-changing market.
You can see our dedicated section for PMI advisers here:
4C Platform are holding a one-hour training session on their platform with advisers on the Tuesday 30th January- 11am. Drop me an email if you would like the Teams meeting link.
Special mention:
Massive congratulations to Mark Dobner in achieving his five pre recommendation cases as a trainee for PMI.
And for an excellent start to the year; Paul Nunn for having a good number PMI cases for January.
I will be looking to celebrate the successes of our advisers each month, so please keep me posted with your news!
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Bipin Sandhu
PMI Supervision & Development Manager
Now might be a good time to be thinking about insuring outbuildings
We are in the real thick of Winter now and with the costly job of Christmas just been and gone it might be a good idea to think about protecting the part of the home that gets the most wear and tear at this time. The outbuildings!
What is classed as an outbuilding?
An outbuilding is any structure that’s part of your property but isn’t attached to the main building. These are often found in the garden or at the end of a driveway. Think of any structure you might have on your clients property and include the likes of sheds, greenhouses, summer houses, hot tubs, pergolas, garden offices and workshops and more.
Top tips on maintaining these spaces:
There are various things everyone can do this winter to protect their outbuildings;
- Double check the exterior- have a little walk around and see if there are any obvious signs of wear and tear- inexpensive exterior paints can be used to refresh and restore some exterior types.
- The roof is an essential part of an outbuilding- now would be a good time to clear off any debris, rotten leaves and branches that might have fallen down during the first part of Winter. Carry out any repairs that might need protection from any water damage and rot.
- Don’t forget the guttering! People are mostly aware of guttering on their main building, but it forms an equally important part of maintaining an outbuilding too. If the structure has guttering, sweep away any rotten leaves and check for damage.
- Get handy with the silicone filler to fill any gaps that might be letting in water. Water damage to out buildings (especially wooden structures) can increase the risk of rot.
- Other ways to protect your outbuilding could be to reinvest in insulation, circulation of air and topping up on your security. All these can be a bit more costly than the basic checks, but will save money in the long run.
With some simple tips and tricks, the outbuilding could be summer-ready for when the hot chocolate, crackling fires and toasted marshmallows are done and everyone is looking to venture out again in search of the sun!
A lot of buildings and contents insurance may cover outbuildings, it is worth brushing up on the product knowledge so you can best advise your clients through the Winter months.
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Amy Wilson
Head of General Insurance (PMI and GI)
