Protection  

Demand for mortgage and protection advice rises

Demand for mortgage and protection advice rises
 Credit: Stefan Wermuth/Bloomberg

Three in 10 mortgage and protection advisers have experienced more demand for their services during the pandemic, according to research from Zurich.

A survey of 94 advisers between October and December found 29 per cent saw more demand, with two-thirds (67 per cent) seeing mortgage advice go up, followed by income protection (39 per cent) and critical illness cover (36 per cent).

The findings come after statistics from the Bank of England showed mortgage approvals for house purchases totalled 818,500 last year, making it the highest number in one year since 2007.

Commenting on the findings, Paul Shearman, mortgage and protection director at Openwork, said: “The past 12 months have indeed proved challenging for advisers as our businesses have been impacted directly by disruption in the economy, changes to regulation as well as to the products and services we’re supporting customers with - which in turn drives up enquiries.”

Shearman said customers’ concerns about their health and family members were also driving an increased awareness and need for protection.

Sam Cattell, founder and mortgage adviser at Mindful Mortgages, said: “Our conversations about providing peace of mind for uncertain times ahead have resonated more with clients this year, and perhaps those clients that may have been on the fence about taking cover, have seen more value in what it can provide.”

The research from Zurich also found that a third (32 per cent) of advisers said their relationships with customers had strengthened through the pandemic, although more than half (52 per cent) said this was not true for them.

Cattell added: “At a time of uncertainty we feel our relationship certainly has strengthened with our clients, firstly because we have been consistently there for them during this time – secondly because we have been able to offer some peace of mind by arranging protection.”

chloe.cheung@ft.com

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