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.

Technology & Fear

By Ali Unwin, Chief Technology Officer & Manager of the Neptune Global Technology Fund Fear has always been a key ingredient for technological experimentation and adoption, and today is no different. But when and where are these fears justified? asks Ali Unwin, Chief Technology Officer and Manager of the Neptune Global Technology Fund  Click here […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment