Mortgage cover in the ascendant
Mortgage insurance cover, or the household expenses versions for those renting, are being selected more and more often by advisers. Some of the factors behind the shift are more obvious than others.
We think the main reasons are these:
First, price, plain and simple: full income protection cover is now very expensive for the middle-market. It is complicating to the sales process to actively work out the affordable package with a client – carefully calibrating that for their budget. A good number of advisers are choosing just to quote mortgage and expense cover as a natural ‘budget’ option, given its lower replacement ratio.
Then underwriting: if you have had difficulty getting the full income protection cover issued for your self-employed clients recently but found mortgage cover with the lower replacement ratio more easily accepted, then you have also found a solution – if only a stop-gap – for the challenges being felt by many applicants.
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