The FCA requirement
The Financial Conduct Authority (FCA) has introduced a new regulatory commitment “Consumer Duty”.
The regulation is focused on firms setting higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first.
A clear instruction from the regulator is that firms need to work with clients to “Avoid causing foreseeable harm”.
Niels Bohr, the Nobel laureate in Physics and father of the atomic model, is quoted as saying, “Prediction is very difficult, especially if it’s about the future!”
Your Mortgage/Home/Family & Protection
When you consider that most initial mortgage terms extend from 25-40 years, being able to predict the future of job security and health is impossible. Yet many households, decide to gamble on complete stability of health and income for the term of their mortgage and decide not to protect their asset and household.
When, you take time to consider what could cause foreseeable harm to you, your loved ones, and your home. What could be the impact of not considering your protection needs?
The loss of an income, which leads to being unable to pay the mortgage and household bills, is generally the biggest consideration. What could cause a loss of income?
- Ill health, leading to not being able to work (short or long-term).
- Losing a job, through being made unemployed or redundant.
- The death of a mortgagee, for an individual contributing to the household.
- A serious illness leading to long-term inability to earn an income.
- Serious damage to your property, caused by flood, storm, fire or factors such as structural movement.
- Comprehensive buildings & contents insurance is not just a term and condition of the mortgage. Having a comprehensive insurance policy should be a prerequisite.
Buying a home is an exciting time. Making sure that your home remains yours and your loved ones for as long as you want it to be is important. Overlooking, fundamental aspects of protecting your home may lead to the loss of your property. MMPE will assist you to review your situation and make informed decisions.
The MMPE Process
- Understand what existing provisions you have in place.
- Including employer/ personal assurances and personal provisions.
- Review and prepare research to address any shortfalls.
- Assist you with addressing any chosen shortfalls.
- Regularly review, as life changes. From growing families to changes in employment and health.
If you would like further information or to discuss options, contact an Independent Mortgage Advisor here.
