View more on these topics

Stop patronising clients when it comes to SPASU

From Andrew Botte

I am writing in response to Thomas Reeh’s letter (Mortgage Strategy January 15). Is anyone else fed up with all the waffle surrounding single premium accident, sickness, unemployment policies?

All Reeh’s points are cogent and to the point. Single premium ASU in my experience (having worked for two sizeable brokerages and an insurer which sold single premium ASU) represents the most suitable solution for many customers, in particular those those who habitually cancel policies.

I speak as an appointed representative who is unable to sell single premium ASU due to the stance of my principal on the subject.

This is in no way intended as a criticism of my principal, Cotswold Mortgage Services. I am over the moon with its service and policies in general.

My view of single premium ASU is simple – where it is offered alongside a monthly pay policy, comparisons can be made and the charge rates (cost per hundred of cover) are the same so what’s the problem?

A comprehensive insurance factfind will highlight any historic cancellations of policies and the Initial Disclosure Document will cover the terms of the sale.

If customers are made aware that they will be paying interest on the product over the term of the mortgage or loan and they choose to purchase it, that’s great. They have been given a choice and have made an informed decision.

It’s up to product providers to en-sure commissions are kept to a sensible level, that charge rates for monthly and single premium products are comparable and that cancellation rights are clearly shown on documents issued by the insurer at the outset of the policy. This acts as a safeguard against un-scrupulous brokers who may not give full disclosure.

Rather than focussing on what can be a valid product in the right circumstances, why not focus on the suitability of sale and standardisation of commission or charge rates and then the need for review to ensure adequate cover is in place through the term of the mortgage or loan?

Let’s stop patronising customers and give them the right to make informed decisions.

Andrew Botte
Chase Evans HomeLoans
South Wigston


Abbey revise fixed rate range

Abbey has made changes to the rates on its existing fixed rate mortgages, as well as launching two new deals.The first is a five-year fixed rate stepped product with a rate of 3.99% that increases in the second and third years to 5.79% and 5.99% in years four and five respectively. The five-year product has […]

Citizens Advice calls for good debt management advice

The Citizens Advice Bureau has warned that the statistics revealed by the British Bank Association only prove further the need for good debt management advice.The BBA revealed record highs in loans and mortgages in 2006, with predictions of further highs in 2007.In 2006, Citizens Advice dealt with 1.4 million debt problems, an increase of 11% […]

Pre-HIP deadline extended to spring 2008

In yet another government U-turn, properties that go on the market before the Home Information Pack implementation date June 1 will now be able to stay HIP-free until March 2008 rather than the original October 2007 deadline. When the government first produced the guidelines for HIPs last summer it allowed that properties put on the […]

Brexit and the mid cap buying opportunities

Video update from Mark Martin, Head of UK Equities, Neptune Investment Management With the Brexit referendum scheduled for 23 June, how much risk is priced into the market and is the current volatility a long-term buying opportunity? Watch Mark Martin, Head of UK Equities, and Holly Cassell, Assistant Manager on the UK Mid Cap and […]


News and expert analysis straight to your inbox

Sign up