View more on these topics

Tracker mortgage clients could boost protection, says L&G

Legal & General is encouraging brokers to revisit all clients on a tracker mortgage because the recent base rate cut could mean they can now afford to purchase a protection plan.

The provider says the Bank of England’s recent decision to reduce the base rate to 3.5 per cent means consumers on a tracker mortgage now have more disposable income to purchase protection.

L&G says those clients may not have had the budget for life insurance and critical illness cover when they originally arranged the mortgage, but may now be able to afford such policies.

L&G commercial director for housing Karen Blatchford says: “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.”


Theory and practice

Chris Gilchrist’s recent article on asset allocation identifies the most critical issue facing most IFAs – how to undertake asset allocation following the recent and continuing market turbulence.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm