Tracker borrowers could increase protection due to rate cuts
Fri, 19 Dec 2008
The recent reductions in interest rates have given advisers the chance to sell protection products, such as life insurance, to tracker clients who may not have been able to afford protection previously.

Brokers are being encouraged by Legal and General (L&G) to examine their client base and revisit those who have taken out a tracker mortgage without protection.

With the Bank of England reducing it base rate this year, tracker clients should now have more disposable income and may be able to afford life insurance and critical illness cover which they may not have had the resources for previously.

Karen Blatchford, the commercial director for housing at L&G, said: "A borrower with a £150,000 repayment mortgage would now be over £300 per month better off, which could provide enough spare cash for protection balanced with other financial aspirations, such as savings or overpaying on the mortgage ."
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