Brokers must prioritise protection plans for first-time buyers

First-time buyer demand has remained robust despite the onslaught of economic challenges introduced since spring 2020. Indeed, the Department for Levelling Up, Housing & Communities’ latest English Housing Survey found that there were around 957,000 first-time buyers in 2020-21, an uptick of 131,000 on the year prior. However, while it is reassuring that prospective buyers have not been deterred by financial headwinds, the wider economic picture cannot be ignored.  

The current downturn, driven by rapidly rising energy prices and consequently high levels of inflation, has naturally prompted many to cut back on non-essential spending. Having a valid buildings insurance policy is a condition for taking out a mortgage, so it is unlikely there will be any change in demand on this front. However, other types of cover, particularly life insurance and income protection, are often among the first casualties when people cut their household spending.  

Doing so is always a risky move, but particularly so for those who have just bought their first home as they are typically left with little to no savings after completing their purchase. With the cost-of-living rising relentlessly, first-time buyers may also find it difficult to rebuild this safety net of savings in the near future, leaving themselves extremely vulnerable.

Protection is a ‘must have’ not ‘nice to have’

Brokers are tasked with the challenging but necessary job of overturning the assumption that insurance policies are an optional expense. They also face the challenge of directing clients to the most suitable policies. Integrating insurance technology into mortgage platforms, as Smartr365 has recently done by partnering with Uinsure, has helped to make this process quick and efficient.

Smartr365 users will now be able to access home insurance quotes within the platform, eliminating the need to consult external brokers. Thanks to auto-fill technology, brokers who have keyed in client data will be able to create, tailor, and compare home insurance quotes in seconds, without having to re-type details elsewhere on the platform. Advisors can then share sleek, comprehensive packages with clients, covering borrowing and insurance, streamlining paperwork and saving time for all parties.

Purchasing your first home undoubtedly poses a significant financial challenge for many, if not most people. This makes it all the more crucial that brokers are issuing holistic advice covering not only a client’s mortgage, but their protection needs as well. Technology now makes that quick and easy – to see it in action, book your demo today.