L&G believes that as the Bank of England has reduced the Base Rate by 3.5 percentage points this year, these clients will have increased disposable income and may now be able to afford life insurance and critical illness cover whereas they may not have had the budget for such policies when they originally arranged the mortgage.
Karen Blatchford, commercial director for housing at Legal & General, said: "Now is the ideal time for advisers to be proactive and look to their existing customers for new opportunities. A borrower with a £150,000 repayment mortgage would now be over £300 per month better off, which could provide enough spare cash for protection balanced with other financial aspirations, such as savings or overpaying on the mortgage. It's up to the broker to take the initiative because the chances are that the client won't think of protection of their own accord."
Legal & General has written to all members of its mortgage network, Legal & General Partnership Services Ltd to alert them to this opportunity.
