A key implication of the MMR will be the lengthening of the sales process; with a recent white paper from Vizolution expecting the mortgage advice process to take between 90 minutes and two hours once the MMR is in force.
Several protection firms have reported recently that the number of protection policies sold has decreased since mortgage sales have been on the increase again, especially as it can take longer to arrange a mortgage now than it did pre-credit crunch.
The danger is, with a mortgage process that takes much longer again, that many clients will be sold no protection at all, or worse still, that it won’t even be discussed – but this risks leaving many clients at risk of losing the home that you’ve worked so hard to help them to buy.
What every adviser needs to plan for between now and the MMR coming into force, is how they will build protection into their sales process so that it’s part of every conversation with a client. Just because the mortgage process takes longer is not a reason to ignore a client’s protection needs.
While some firms might choose to have separate specialists for mortgages, protection and GI, it can be much more powerful if protection is discussed while the mortgage is being arranged to make sure that every pound borrowed is a pound protected.
Protection is rarely something that consumers will actively ask about, but advisers have an ethical obligation to tell their clients what they need and what is available. Most clients moving home will find the money for a new kitchen or new decoration, but far more important are the policies that will protect all of this should the worst happen and they lose their job, their health or worse still, their life.
Toni Smith is sales operations director at First Complete
