Protection must be a priority as mortgage lending recovers - Friends Life

clock

Customers must be made aware of the need for protection policies as the mortgage market has begun to show significant signs of recovery, Friends Life has said.

New figures from the Council of Mortgage lenders has revealed that lending for first-time buyers has increased significantly in recent months. 

In the fourth quarter of 2013, 13,400 loans were advanced to first-time buyers in London, an increase of 6% on the previous quarter and a rise of 33% compared to the fourth quarter of 2012.

Meanwhile, the number of the number of loans for house purchase in Scotland reached its highest level in the fourth quarter of 2013 since the second quarter of 2008. 

Equally a total of 1,800 loans were advanced to first-time buyers in Northern Ireland in the fourth quarter of 2013. This was an increase compared to the third quarter of 13% and up 29% compared to the fourth quarter of 2012.

In Wales, the total number of loans advanced to first-time buyers overall in 2013 was 10,600, up 22% compared to 2012. The total value of these loans was £1.1bn which was up 28% compared to 2012, the CML said. 

Kevin Russ, technical mager for individual protection at Friends Life said: "The new figures from the Council of Mortgage Lenders make it clear that more and more people are stepping onto the property ladder for first time. Buying a property is the biggest investment most people will make in their lifetime.

"Given that many of mortgages will be sold on an advised basis it is important that advisers inform consumers of their options when it comes to protecting their home and their family, with life cover being especially important if there are dependants.

"The booming mortgage market is likely to prompt an increased demand for related life products. There is still a worrying number of people who have mortgages but have no way to pay it off should something happen to them. Making customers aware of protection products is an important part of the mortgage process."

More on Individual Protection

COVER Protection and Health Summit 2024: Morning roundup

COVER Protection and Health Summit 2024: Morning roundup

Today (7 November, 2024), COVER hosted its annual Protection and Health Summit, focusing on championing the value of protection and health.

Jaskeet Briah
clock 07 November 2024 • 5 min read
Gen Z men reaching out for mental health support

Gen Z men reaching out for mental health support

Aviva research found

Jaskeet Briah
clock 07 November 2024 • 2 min read
Little improvement in insurer service levels: AMI

Little improvement in insurer service levels: AMI

AMI Viewpoint Report

Jaskeet Briah
clock 05 November 2024 • 3 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read