Scottish Widows financial protection technical and industry affairs manager Johnny Timpson (pictured) said the changes enacted to state benefits last year were a huge wake-up call to the mortgage industry.
“We really do need to talk to all mortgage customers old and new about the implications of that,” he told Mortgage Solutions Television in association with Scottish Widows.
Timpson noted that after more than 50 years of mortgage support as a benefit, last year it moved from a loan scheme with any support being paid back on change of property title.
And he warned that eligibility was much tougher which many borrowers may not understand and would potentially leave them on their own if the worst happened.
“You do need to have a plan B conversation with that new mortgage customer and that old mortgage customer, so think about going back to your clients,” he added.
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