As the difficult times remain with us despite the recent reduction in the Bank Base Rate, it’s now more important for intermediaries to maximise the income earning opportunities around them.
This is not only from a ‘Treating Customers Fairly’ view, but also as we enter into what many are describing as an economic slowdown, many consumers will be cutting back on what they believe is unnecessary expenditure and this includes protection policies.
Protection over the past two years has probably been the poor relation to the mortgage as a buoyant market has meant some advisers have focused on saving people money and not encouraging them to spend the savings they make on life insurance, critical illness and health policies.
As we enter a world when the surplus in the bank account each month is a lot smaller or even non-existent, the peace of mind that this surplus offered has gone and we must ensure consumers look elsewhere for their financial security.
Looking for change
I’m not a great advocate of single premium payment protection and the fact that many suppliers of this product are reviewing the suitability of the benefits, its pricing and are attempting to comply with new guidelines from regulatory bodies would suggest that I am right.
But this should not let the adviser neglect regular premium mortgage payment protection advice in their review of a client’s needs, especially as the talk of redundancies and cost control increases.
Now is an ideal time to go back over the mortgage business sold over the past couple of years Protection needs are a useful entry tool if only to keep your relationship with your consumers alive and your firm at the top of the shopping list for financial advice.
Protection is always a subject that is easily declined by consumers and it is the good adviser who can really relate their client to the importance of this subject.
Many providers have sales aids and interesting information that really brings home the need for cover; and the fact that the average age for a claimant on a critical illness policy is around 43 is testament to fact that we all need this cover.
The ‘it will never happen to me’ attitude is not a valid reason for a client to ignore theirs and their family’s future financial security.
Cross-sales
So, as mortgage sales continue to be a challenge, cross-sales are an efficient method of increasing your income earning opportunities, supplementing any shortfall in mortgage volumes.
Look towards secured loans as a viable alternative to placing those cases that do not necessarily fit the mortgage criteria.
We have seen a number of clients have their borrowing needs resolved very responsibly through the use of second charge loans, with many master brokers giving choice and value for money especially when debt consolidation is required.
Other areas for consideration are introducing conveyancing leads, and don’t forget Home Information Packs.
Mortgage business is proving harder to find , but for the resourceful broker there is still plenty of business to be had.
