Stamp duty holiday has created ‘protection opportunity’ for advisers in 2021

Eighty-one per cent of advisers reported a spike in mortgage demand last year due to the stamp duty holiday, according to a survey by Guardian.

The protection challenger said its findings highlight a “significant protection opportunity” for advisers in 2021.

The research, based on a survey from 553 advisers carried out between 19 October and 30 November 2020, also revealed that 72% of advisers said their mortgage sales had grown, while 48% said the same for protection. Only a quarter of advisers said they’d seen no change to mortgage sales, yet 46% reported no change to protection sales.

Guardian suggested this discrepancy between mortgage and protection sales highlights the opportunity for 2021, after 91% of advisers also revealed in the survey that that they always discuss protection when advising on a mortgage.

When asked why they did not place protection alongside a mortgage straight away, the biggest reason advisers gave was that clients wanted to come back to it later (42%). This was followed by 21% who said their clients didn’t want to discuss it, while 17% said their clients couldn’t afford it. Only 4% said their clients didn’t think they needed it.

“The stamp duty holiday provided a welcome boost for mortgage advisers last year and it’s great to hear that the overwhelming majority also discussed protection,” Guardian marketing and proposition director, Jacqui Gillies, commented.

“But this research shows a discrepancy between mortgage and protection sales last year which poses a big opportunity for advisers as they go into 2021.

“We hope all advisers will follow up if a client says ‘I want to come back to it’ to make sure people are getting the protection they need. This follow-up conversation is not only right for the customer, but for advisers too as they look to continue to provide their valuable advice through these times of uncertainty and change.”

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