People’s opinions on income protection may be changing. Brokers are becoming more interested in writing and advising on IP and more people are taking out policies. Our National Account Manager for Protection, Craig Bryce, takes a look at the latest trends in the market.
If there is one thing I have noticed this year that has been different to others, it’s the increase in the amount of brokers looking to write more income protection and an eagerness to engage with IP training sessions.
When I’ve previously talked to brokers many would shy away from writing short term IP policies with a one or two year payment period. But this year it seems as if attitudes are changing. More and more brokers are writing short term IP policies – and rightly so!
When you are trying to tailor a plan to a client’s budget sometimes short term IP might be all they can afford and receiving a benefit for 1 or 2 years is better than nothing at all, right? As well as this, you could always argue that if you are unable to work for 2 years then the likelihood is that you will have claimed on your critical illness plan as well.
Having breathing space could really help your client in an unfortunate circumstance. If you’re off work your bills will keep coming and you also still need to eat and live a life. Having short term IP, even if it’s just for one year, can give a client precious time to decide what they want to do, even sell their house if they need to.
I think with brokers working more towards a client’s budget and tailoring plans specifically to them we will see more short term IP sales going forward, and personally I’m all for it! Short term IP is an option depending on your client’s budget but should your client be able to afford comprehensive income protection then that’s something that should also be considered.
Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.
Join our award-winning Mortgage Network as an appointed representative, or become a member of our Mortgage Club, to start benefiting from our fantastic range of comprehensive services and support. Call the Broker Support Team on 0345 130 7446 (opt 1) to find out more.
Nathan Reilly spoke with Business Development Manager Andy Yates from Teachers Building Society to chat about what Teachers Building Society can teach the financial services industry, why he loves his job and his West Country roots.
Andy has over 30 years’ experience working in the financial services industry. Having worked with high street lenders, as an adviser, regulated trainer, T&C supervisor and regional manager he has a huge amount of knowledge about mortgages and the wider financial industry.
How do you help both Network and Club members?
The recent broadening of our lending criteria means that we are now available to all occupations nationally, we’re like a new lender option for you. As a smaller regional building society you can quickly build a relationship with us as you have continuity of contact points with the broker team, we provide an excellent speed of service, access to in-house underwriters for decisions, strong affordability at higher LTV with our 5 times income cap available up to 90% LTV (95% LTV for teachers) and we’re also able to consider future contracts and probationary periods.
What sectors do Teachers Building Society specialise in?
Our lending is based on criteria rather than price, we can help FTB or First Time Movers requiring higher affordability at higher LTV. We are happy to consider an applicant’s future contract and those starting on a probationary period – useful where payslips are not yet available. We support the government Help to Buy schemes both purchase and re-mortgage and provide a 95% lending option for shared ownership clients. Specific teacher criteria include: Newly Qualified Teachers on their first one year contract are treated as permanently employed and Supply Teachers can be considered once they have a track record of two academic terms.
What is it that surprises advisers when you talk to them?
That we have broadened our lending criteria to support all occupations – not just teachers! Our 5 times income multiple remains available up to 90% LTV … and 95% LTV if you are a teacher.
What’s the best part of your role as Business Development Manager?
Easy answer – the day to day contact with advisers and being able to provide a solution. I really enjoy the relationship side of the BDM role, its great working with established adviser relationships and as one of the smaller regional building societies, I enjoy the opportunity of presenting and meeting new broker firms.
What can Teachers Building Society teach the financial services industry?
Good question – I’d say use our experience of the Teacher profession sector, future contracts, pension contributions, supply teachers etc. Every lender will aim for first class service levels and Teachers is no different – if you’ve not used us before give us a call.
If you could live anywhere in the world, where would it be?
I’m a West Country lad, so I would move back to the south west, somewhere on the coast like Shaldon – it’s a lovely spot with some great local pubs. The Shaldon car sticker I saw made me smile “A beautiful drinking village ruined by fishing.”
If you could only eat one meal for the rest of your life, what would it be?
Playing on my West Country roots, I’d opt for a pasty!
Join our award-winning Mortgage Network as an appointed representative, or become a member of our Mortgage Club, to start benefiting from our fantastic range of comprehensive services and support. Call the Broker Support Team on 0345 130 7446 (opt 1) to find out more.