View more on these topics

Leader: Time to be bold on IP

Protection is rarely given the same amount of airtime as mortgages but, in recent weeks, several high-profile industry names have waded in to the debate on improving take-up.

The so-called ‘protection gap’ – the amount by which people are under-insured – is measured in trillions, not billions, of pounds. There are passionate people in the market who have worked tirelessly for years to boost the profile of these products but, in all honesty, consumers today are as apathetic as they have always been when it comes to insuring themselves.

Last month, Association of Mortgage Intermediaries chief executive Robert Sinclair floated the idea of offering a rate incentive on mortgage products where the borrower has income protection in place – which this magazine supported.

Now, Pink director Mark Graves has gone a step further by calling for IP to be mandatory when taking out a mortgage.

There is a good chance many will view this as a ‘nanny state’-type idea and argue that it is up to the borrower to ensure they are adequately covered. But, as Graves points out, this is a “win-win-win” situation – for the lender, the borrower and the Government.

Of course, it would not be simple to implement because there are likely to be many things to take into consideration – but the overall concept is sound.

For too long the industry has been fiddling around the edges of the problem. Engaging consumers has proved extremely difficult, so a different direction is needed. Most people need a mortgage to purchase a home and a requirement to take out insurance to secure finance would not put borrowers off.

Now is the time to be bold and radical. The benefits are there for everyone to see.

Recommended

Paul-Smee-700.jpg

Analysis: Help to Buy Isa may be a winning brand

The evidence suggests the Help to Buy Isa is a winning brand and now we have an explicit link between a savings product and a mortgage product. The Budget paperwork was fuller on the savings end of the idea than the mortgage end so lenders can expect to work with Government officials to hammer out […]

Data-Corporate-Finance-Business-Pen-Graph-Growth-700x450.jpg

Packagers team up to track bridging sector

Packagers have joined forces to launch a new quarterly series highlighting lending trends in the bridging sector. The companies involved include Brightstar, Enness Private Clients, Positive Lending, SPF Shirt Term Finance and bridging lender MTF. Its first report, published today, shows 69 per cent of loans written in the first quarter were unregulated. The average […]

mole

Mortgage Mole: A change of air

A change of air Mole wants it to be known that he has no problem with PR.  Most people working in the profession are very good company and are always ready to buy a round of drinks with their corporate credit card (bonus). But, on the other hand, sometimes they ask the most bizarre things […]

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]

Newsletter

News and expert analysis straight to your inbox

Sign up