Alexander Burgess is a director of British Money
It’s time for lenders to outsource their mortgage insurance to a third-party. In doing so, lenders will relinquish the regulatory, financial and reputational risks associated with what is now considered to be a toxic product and stabilise future compensatory reserves.
I believe that outsourcing is the only way to tackle the protection drought and give consumers access to a new excess and exclusion-period free product that’s designed to pay claims in the event of a lost income.
Industry stats show around 96% of people with mortgages have no financial support mechanism to pay their bills if their salary goes and with fewer lenders offering a solution, it’s time for a specialist to step in and rectify the situation.
A call for outsourcing is at odds with Government attempts to reduce the number of firms that do this, however this is in the context of overseas outsourcing.
David Cameron is calling for companies to ‘Re-shore’ and use UK-based suppliers for their products and services. This is exactly what I’m doing; urging lenders to use an independent supplier with a great British heritage and five-star rated product*. This is mutually beneficial to lender and borrower.
