Opportunities in the mortgage market
The state of the mortgage market is the topic of conversation, whether this is through the media, political discussions or conversations with clients, colleagues and friends. In the past, it was around house prices, but this has shifted to interest rates, with many never seeing rates so high.
I think most advisers would argue that previous Governments have all been very keen to talk to the big mortgage banks and lenders, but perhaps have paid too little notice to those who are at the front line in trying to find the right solutions for borrowers, particularly over the last 12-18 months when the mortgage market has been so tumultuous.
It is perhaps the Product Transfer sector that is the most important to advisers, given the number of borrowers who are coming off previous deals each month, which I have covered in recent articles.
We know the marketplace purchase business is not the force it was two or three years ago. Clients genuinely need the expertise of you the adviser to contact them and explain the choices they have.
To assist you, we have recently launched the Product Transfer Hub with sales guides and aids, resources and specific lender criteria information. This has been designed for members dealing with those existing clients coming to the end of their deals.
Latest News
Get in touch
Anita White
Head of Lender Relationships
Two new providers on the equity release panel
Scottish Widows – first whole network to gain access to their equity release product
Livemore Capital – joined panel with their new equity release proposition and have released access to Property Plus to give more opportunity to those more quirky properties. Again another exclusive access that is not available industry wide
Latest News
Get in touch
Victoria Wilson
Head of Equity Release
The closure of mortgage and rent cover (MRC)
You have a variety of products available through providers, with a focus on short-term income protection plans and children’s critical illness cover. It’s great that there are new and exciting products being introduced this month or in the near future. With over 1.9 million product transfers this year, it’s an opportune time to review people’s protection portfolios.
Even if you’re a mortgage broker, you can still benefit from discussing additional benefits with providers. By reaching out to them, you can learn more about the added advantages they offer and determine if they align with the needs of your clients. Keeping an eye on updates and staying in touch with the providers will help you stay informed about the latest offerings in the market.
Why don’t more advisers sell mortgage protection type plans and also why don’t home owners see the value in them? Despite their potential benefits, several factors contribute to why people might choose not to buy mortgage protection plans:
- Cost: are they be relatively expensive compared to other insurance products? Do we even quote for them? Do we even know how to quote for them?
- Limited coverage: if mortgage protection plans are tied directly to a specific mortgage, is it maybe they want a policy that can be used for various financial needs, not just the mortgage?
- Policy limitations: are advisers and customer alike unsure what basis they would pay out?
- Existing insurance coverage: many individuals already have life insurance or disability insurance policies that they believe provide adequate coverage for their financial needs, including paying off the mortgage.
- Flexibility: maybe clients think mortgage protection plans are typically tied to a specific lender and mortgage.
In conclusion, mortgage protection plans can provide valuable financial security for some individuals, their perceived high cost, limited coverage, and policy limitations, coupled with existing insurance coverage or alternative financial arrangements, can lead people to opt against purchasing these plans. Please ask providers or ask us to provide training to better understand these plans, otherwise they might be withdrawn due to not being commercially viable to the insurer, as per LV= product withdrawal. On a positive note, The Exeter sent me stats the other day, which really pleased me:
- Total business up by 39%
- Income Protection up by 12%
- Real Life up by 184%
Is this due to the hard work of their BDM team? Let’s look at what else has been happening.
LV = closure of mortgage and rent cover
MRC has been available to distributors for nearly 2 years and has unfortunately not sold in the volume we had hoped and planned for. This has impacted the commercial viability of the product remaining open to new business, and MRC will no longer be available to new business from 10 August 2023.
This will allow our protection business as a whole to focus on other products that have the potential for more growth and reach a wider customer audience.
- We’ll no longer return quotes for MRC (12 month and 24 month) from the evening of 9 August 2023.
- This means we will not return a quote via the adviser portals (iPipeline, iRess, DLP LifeQuote and Webline) when a MRC quote has been requested. Message wording will be displayed on the quote results screen, “Mortgage and Rent Cover is no longer available for new business applications.”
- Pipeline arrangements
- For portal/quote pipeline arrangements, we will apply a manual process and agree to honour these if accompanied by a valid quote (14 days post implementing the change).
Remember to assess each product carefully, considering factors such as coverage, costs, terms, and conditions, to ensure they provide the right level of protection for your specific situation or for your clients. Lastly, what are your thoughts in the comparison sourcing systems?
Latest News
Get in touch
Amanda Wilson
Company Director
The July Private Medical Insurance Summit: Empowering all private medical insurance advisers
The Private Medical Insurance (PMI) Summit held in July was a significant event that brought together many of our members from various firms. This exclusive gathering provided a platform to discuss the evolving landscape of private medical insurance and its impact on protection advice.
With a focus on collaboration, knowledge-sharing, and professional development, the summit proved to be a transformative experience for attendees.
Let’s delve into the key highlights of this insightful event.
The summit kicked off with thought provoking presentations and panel discussions. Exploring the importance of private medical insurance, alongside income protection. The providers shed light on the growing importance of incorporating PMI considerations into the overall financial planning process. Attendees gained valuable insights into the benefits of offering PMI Solutions to clients, understanding how it compliments mortgage and protection strategies, and enhances overall financial well-being.
With the PMI landscape constantly evolving, the summit provided a platform for participants to stay updated on the latest market trends and innovations. Industry leaders shared their expertise on emerging insurance products, technological advancements and regulatory changes impacting the PMI sector. Attendees gained a competitive edge by understanding the evolving needs of clients and how to leverage new solutions to provide comprehensive advice.
Enhancing client relationships and communication:
Effective client communication and relationship management were key themes addressed at the summit. Interactive round table sessions focused on developing client-centric approaches. Advisers learned techniques to communicate the value of PMI effectively, addressing client concerns and tailoring solutions to meet specific needs. The summit emphasized the importance of building trust and long-term relationship with clients.
Navigating compliance and regulatory challenges:
Compliance and regulatory considerations play a crucial role in the PMI sector. The summit provided a platform for advisers to gain a deeper understanding of the regulatory landscape and navigate compliance challenges effectively.
Some exciting upcoming news
All PMI advisers, get those coffee mugs ready, PMI Coffee Mornings are heading your way really soon. This is a great opportunity to have a discussion with the providers, refresh our knowledge and share ideas. Meetings will be carried out in the first week of the month, once a month. Further details to follow.
Latest News
Get in touch
Bipin Sandhu
PMI Supervision & Development Manager
Catch up with the latest news from our providers
In this months update, Source have enhanced their partnership with property data experts Whenfresh, optimising Sources technological and utilising data to further support advisers. LV highlight the key benefits of there platinum and gold SmartQuote home insurance, including accidental damage cover, working from home contents cover and up to £1.5 million buildings cover. Integra joins Paymentshield’s home insurance panel. With over 40 years experience in the UK home insurance market, Integra products use the latest in-depth data enrichment technologies.
Latest News
Get in touch
Amy Wilson
Head of General Insurance (PMI and GI)
