UK borrowers who have been financially impacted by the Covid-19 crisis are likely to seek mortgage advice, according to Legal & General. Its latest research uncovered three in five borrowers (60%) whose financial circumstances have changed and 50% of borrowers who have not seen a change to earnings say that it will be important to seek advice when looking for their next mortgage.
Legal & General research found that well over half (60%) of all borrowers say they will likely reach out to an adviser when remortgaging, presenting a growing opportunity for intermediaries to help borrowers who need a mortgage in the wake of the pandemic. The high demand is also underpinned by the latest UK Finance data which shows over 700,000 residential fixed rate mortgage products will mature this year.
Understanding how different mortgage options can support their individual lending needs will be essential for homeowners following the Covid-19 pandemic, with one in three respondents (35%) that needs to remortgage stating that at least one individual in their household has been negatively impacted financially by the pandemic.
The research also uncovered that there is a need to educate consumers on the importance of protection when securing a mortgage. Just 21% of those who have not seen their income change and 35% of those who have been financially impacted by the crisis say they will consider taking out life insurance when remortgaging. Moreover, just one in five (20%) borrowers have critical illness cover and even less (11%) have income protection. Changing situations may mean that borrowers need extra protection.