The concluding half of 2022 has been a testing time for mortgage intermediaries, with the combination of increasing interest rates, fluctuating availability of mortgage products, and the energy crisis. This, coupled with alarmist news articles and predicted drop in property prices, have given rise to fear amongst existing borrowers concerned it may impact their loan to value, or they may encounter mortgage repayment difficulties when they look to refinance their current deals.

Moreover, with borrowers’ disposable income due to become more constrained, this will certainly impact further those refinancing. According to UK Finance’s latest household review, 1.3 million existing borrowers are set to come to the end of their fixed rates in the next year and refinance. The report noted that the average borrower would still be able to refinance, however there would be a “material – but significantly reduced – degree of free income left over”.

Plus a study by a leading comparison site shows almost nine in ten of borrowers are concerned that any rise in mortgage payments will impact their ability to pay household bills. So, from the borrowers perspective it is an unclear, tricky time, and those soon coming to the end of their fixed rate deal are likely to see their concerns realised when they face the harsh reality of repayment rises.

Times appear tough for people, and may get tougher, however you can continue to act in your clients’ best interests and help them to weather the storm. By providing a guiding light, reengaging with these clients, reviewing their circumstances and calmly keeping them abreast of the market, helping them to prepare their budget and to protect themselves for the future. In doing so, you are demonstrating your continued support, providing incredible value during this unpredictable time, and retaining their business.

By letting your existing customers, many who may be panicking about remortgaging, know that you’re here for them, throughout the lifespan of their mortgage and the services you can provide as their product comes to an end to find them the best deal you can – will surely be a message welcomed at this time.  You can alleviate their concerns and worries which will only become heightened, without the support of someone with knowledge and expertise. Plus, you can add even more value by having a conversation about protection – as it seems there has never been a more appropriate time to have this discussion with your clients.

Consider if, on top of the financial strain that we are all feeling, that your client became seriously sick or injured and could not go to work. Illness or death of a wage earner can plunge families into real financial hardship. How would they cope with having even more financial (and not to mention emotional) pressure of not being able to work and at the same time still trying to pay ever increasing prices to get by day-to-day?

If the answer is that you can’t imagine how they’d cope, then protection insurance could be of more value to them than ever before.

If protection sales are not your specialist subject, nor part of your core service offering, or if you don’t feel you have the time (on top of everything else), then you can support your clients, exercise your duty of care, and avoid foreseeable harm, by signposting. Pointing your clients in the direction of someone who will competently and efficiently assess demands and needs, provide timely best advice, and make a recommendation – and deal with all the additional admin and compliance rigmarole.

PMS, a true leader in its category and one of the UK’s leading mortgage clubs, with more than 8,000 advisers has specially selected Essential Insurance, to bring their advisers an all-new protection referral solution. If you do not always have the capacity to have a full protection conversation with every single client, or if sometimes you just want the peace of mind that your clients are being looked after by the experts, then this service provides you with a perfect solution.

Visit our website to find out more and to start referring simply click “Sign Up Now”.