Recent Council of Mortgage Lenders figures show mortgage arrears fell and repossessions were down in Q1 2010 to 9,800 from 10,600 in Q4 2009. Great, until you realise this works out at 110 a day.
Meanwhile, unemployment has risen to 2.5 million – the highest number since December 1994.
There is a fear that public sector workers will be the next big victims of redundancies, and as they make up 20% of our national workforce the knock-on effect doesn’t bear thinking about.
But if unemployment is at its highest for 16 years, how can arrears and repossessions be falling? Well, mortgage payment protection insurance and accident, sickness and unemployment products are paying out more than ever and doing precisely what they were designed to do – keeping families in their homes.
Everyone knows somebody who has been affected by redundancy and even the most confident clients are quietly concerned about job security.
Now is the time to discuss MPPI and non-mortgage related protection products with clients. Not only is it in their interests to have one of these products, it’s also in yours as any product you may have provided them with in the past is vulnerable to cancellation, bringing with it the cessation of trail commission or clawback.
If you can provide your clients with a product that keeps the roof over their heads, whether rented or owned, it will be you they return to after the storm.