New research from Legal & General has revealed that a staggering 34% of borrowers who didn’t take advantage of a mortgage adviser have no financial protection in place for their mortgage.
2,000 UK homeowners were surveyed and a large number of those who went directly to a lender, without using the services of a mortgage broker, didn’t have protection. This included things like policies for life insurance, cover for critical illness and income protection.
Hundreds of homeowners have no safety net when it comes to situations such as critical illness, long-term sickness, or the death of a loved one. Any of which could put them at serious risk of failing to meet their monthly repayments.
Unaware of protection
The research also revealed that 5% of those surveyed didn’t know whether they had any protection policy or not, because they had gone directly to a lender without using an advisor. Meaning they could unknowingly be able to claim for critical financial support.
This is a clear example of why getting the right mortgage advice isn’t just to help you find a great mortgage deal. It’s also to make you fully aware of and understand the protection policies you need, should the unforeseeable happen.
Awareness of the risks
Despite the figures, it appears that homeowners are aware of the risks. 35% of those who didn’t use a mortgage advisor stated that financial security for their family was the most important thing to protect should they die after taking out a large financial commitment.
According to Cancer Research UK, 1 in 2 people living in the UK will be diagnosed with cancer in their lifetime. However, the survey of homeowners also revealed that less than a fifth had taken the advice of a mortgage advisor to get a critical illness policy. 29% also stated that financial security should they be unable to work was their main concern.
All about the right advice
This research highlights the fact that it doesn’t matter whether you’re a first-time-buyer, a current homeowner, or someone looking to move homes; getting advice can ensure you don’t miss out on the protection you need.
Getting expert advice from mortgage brokers who are authorised and regulated by the Financial Conduct Authority can be invaluable. Not only can it help you navigate the thousands of products on the mortgage market, you can also make sure you get the protection you need to avoid a financial crisis.
At TaylorMade, we’ve been providing comprehensive financial services for nearly a decade, with a no-nonsense, jargon-free approach. We are authorised and regulated by the Financial Conduct Authority, and dedicated to giving you complete peace of mind.
Our experts will provide you with all the information you need to make the most informed decision, while supporting you all the way through your mortgage process.
Get in touch with our team today to find out how we can help you.