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.”