We recommend protection cover when offering mortgage advice

Thomas Oliver’s Hertfordshire Mortgage Brokers and protection specialists, Errol Hall and Katherine Mumford review the need for protection cover when taking out a mortgage.

Ignoring protection cover leaves your family and home at risk

One thing we always emphasise to clients is that mortgages and protection cover go hand in hand especially when discussing a client’s main residential/family home. However all too often the important task of discussing protection is either ignored or not fully addressed with clients leaving their family and home at risk. 

Thomas Oliver’s mortgage broking team offers protection for you and your family

We help our clients with the following Protection & Insurance policies:

• Life and Critical Illness Cover
• Whole Life
• Relevant Life Policy
• Accident Protection
• Income Protection
• Business Protection

Thomas Oliver mortgage brokers ensure clients consider protection when we offer mortgage advice

Errol Hall, Mortgage Broker in Cricklewood, North London, said: ‘A mortgage is usually the largest financial commitment many of my clients will take, placing the responsibility on me to ensure the client is fully aware of all the risks and how some of them can be mitigated through taking out protection insurance. This is why when I first meet a client and offer mortgage advice I will go through all my services when providing disclosure. I discuss how I can help clients achieve their aim of purchasing a new home, while making sure they can continue to live there and pay their new mortgage even if they were to fall severely ill. As a result the client is fully aware I can handle all their needs and I will do everything possible to protect their family in a worst case scenario. Now during my initial discussion with the client I make sure their overall budget includes both their mortgage payments and adequate protection cover to protect their home and family.  Understanding how protection cover works and the benefits it brings encourages the client to go out looking for appropriate properties, so they won’t have any unexpected shocks regarding the costs when they find something suitable. All the Thomas Oliver mortgage broking team work in this way. Our view is that it is one thing if a client decides against taking protection but it is another if they are not informed or given the choice about the protection services we offer. 

Errol Hall, Mortgage Broker in Cricklewood, North London, Hertfordshire said:

‘Now when a client decides against taking out protection cover it is usually because they don’t believe it will happen to them, or it is an affordability issue.  I have already explained how I make sure affordability is not an issue when I offer mortgage advice but in terms of examples taking out protection cover for your family is very similar to purchasing a car. You wouldn’t buy a 5 litre sports car if you couldn’t afford the insurance or petrol, so similarly we recommend clients do not over stretch when purchasing a house and taking on a mortgage. If you can’t afford to buy furniture or protect your home for your family perhaps you should reconsider your purchase. When people say ‘it won’t happen to me,’ I simply get them to think about their family and friends and show them a risk calculator. Once I have gone through the risks with them they start to realise just how common it is to have a severe illness and not be able to work and pay a mortgage. So the risk of not having insurance is far too great if they want to protect their families.’

Katherine Mumford, Mortgage Broker in Tottenham, North London said:

‘Overall it is important to make sure you have adequate protection cover in place which is why I will always make sure a client is fully informed of all the risks when I offer mortgage advice before they take out their mortgage. I will review different client specific scenarios with them to understand how they would manage if they became ill with e.g cancer, back problems or stress. If a client doesn’t take out protection cover I make sure they sign a disclaimer to show they have been given appropriate protection and mortgage advice. As harsh as this sounds if anything untoward were to happen in the future I will not be held responsible. In reality protection cover is normally affordable and will give you peace of mind and ensure your family’s security.  

In summary

We recommend if you are taking out a mortgage you listen to your mortgage advisor and consider the protection cover they offer.  If you have a mortgage already and you don’t have any protection cover – for example life insurance cover, critical illness cover or  income protection call our mortgage broking team for a free initial consultation on 01707 872000.