Mortgage and insurance network Stonebridge Group has urged mortgage and protection advisers to focus on post-EU Referendum opportunities as political and fiscal uncertainty grips the UK.
Stonebridge also called on advisers to ensure clients are provided with quality advice and support to allay any uncertainties they may have about their current financial situation and future.
It said s working with its advisers and appointed representative (AR) firms on how to communicate with clients in the new ‘Brexit world’ and what information to provide them with, particularly around remortgage opportunities and the need to have adequate protection cover in place.
With the Governor of the Bank of England, Mark Carney, signalling a further cut to Bank Base Rate (BBR) over the summer, and lenders actively repricing in order to secure business volumes and hit lending targets, Stonebridge believe many existing borrowers could benefit from remortgaging.
In particular, it is urging advisers to contact those clients currently sitting on standard variable rates (SVRs) who are likely to be able to save considerable sums of money because of the competitive rate environment.
Richard Adams, managing director of Stonebridge Group, said: “Understandably, given the uncertainty, many clients will be nervous about the current direction of the economy and how things might play out, in terms of our negotiated exit from the EU. Add into this potential fears around the increased likelihood of job losses, and you can forgive clients for being wary about what might happen next and the potential negative impact this could have on their individual circumstances.
“Clearly, advisers have a major role to play here not just in reviewing client’s mortgage and protection needs, but providing a ‘common sense’ voice in an environment which can seem lacking in this quality at the moment. Being the voice of reason, but also outlining the options that clients can take, is a crucial part of the advisers’ role and we are working with our firms to ensure they are communicating effectively and getting the right messages out to their client bank.
“Despite the negativity around at the moment, there are a number of areas where advisers can undoubtedly find business opportunities, not least the remortgage market which is incredibly competitive and (with any cut to BBR) will continue to move in this direction. If you are able to save clients money by remortgaging then we would suggest you also focus on bolstering their protection cover, perhaps by using those mortgage sangs. Given the circumstances, if now isn’t the time to be talking about protection, then I don’t know when is.
“This is all about providing clarity and certainty to clients and ensuring they have the right mortgage and protection cover to deliver the peace of mind many are seeking.”