The network has introduced a standard that all advisers must ask their mortgage clients to bring eveidence of their sick pay and protection policies to the first mortgage appointment. The adviser will stress test the mortgage to see how long the applicant could afford to pay their mortgage if they were too ill to work.
The announcement by Pink followed a series of workshops around the country and the verdict from Pink’s advisers was this was the right way to proceed.
Le Beau (pictured) said: “We would like to congratulate Pink on a very responsible and much needed approach to assessing the financial vulnerability of its clients.
“This has been missing in the process for helping people to take out home loans in many circumstances. Pink’s approach is enlightened and socially responsible. We applaud it and urge other mortgage advisers to make this standard industry practice.”
Roy Mcloughlin, protection adviser and a member of the IPTF, added: “I am delighted with the approach Pink is taking to assess customer needs, and the rightful emphasis it is placing on financial vulnerability should a client suffer ill health.
“Every adviser must take this into account when assessing the options for those wanting a mortgage. It is good practice and should be followed throughout the industry.”
Recent research by Royal London had found 52% of mortgage holders surveyed said they had no plan in place to pay their mortgage if they were unable to work through illness.