Britain is well and truly in recovery, and prospects for owning a first house are on the rise. Backed by the new Help to Buy scheme, the number of first time buyer registrations has soared by over 78% over the course of 2013.
This means that there is a unique opportunity to educate future homeowners on the importance of protecting what is likely to be their biggest asset.
A recent Paymentshield survey has shown that almost one third of UK homeowners are without vital home insurance. 34% have no contents insurance, 81% are without mortgage payment protection, and 96% have no income protection.
With this in mind, and thousands of first-time homeowners entering the market, financial advisers have a real opportunity to step in and show what value they can offer new mortgage clients.
By explaining the avoidable risks and challenging the ‘it won’t happen to me’ mentality, brokers can take advantage of the huge potential in the market.
The increase in first time buyers also hands financial advisers a chance to capitalise on sales of mortgage payment protection insurance.
With lending to first-time buyers increasing by 33% in the last year, brokers can offer first-time buyers piece of mind whilst taking advantage of a growing marketplace.
Some products, such as the home insurance product offered by Paymentshield, can even provide benefits such as an introductory discount for the first two years and deferred payments for the first two months, handing customers a little extra cash at a time when there is a big expense associated with the purchase of their first home.
There is a real opportunity here for brokers to communicate to first-time buyers the importance of protection when purchasing their first home, and explaining the products available on the market that will provide them with the right level of cover and, in many cases, value for money.