Stamp duty holiday highlights protection opportunity for 2021

81% of advisers surveyed said the stamp duty holiday had caused a spike in mortgage demand and 72% said their mortgage sales had grown, but only 48% said the same for protection.

46% reported no change to protection sales since the introduction of the stamp duty holiday.

Guardian says this discrepancy between mortgage and protection sales highlights an opportunity for the start of 2021.

91% of advisers told Guardian 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 given 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 and 17% who said their clients couldn’t afford it. Only 4% said their clients didn’t think they needed it.

The research also found that clients continue to have an increased willingness to talk about protection. 75% of all advisers said their clients were more open to discussing protection since Covid began and this was a trend that persisted throughout 2020.

Jacqui Gillies, marketing and proposition director at Guardian, said: “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. 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.”