The Income Protection Task Force (IPTF) has backed Pink's new standard compelling every adviser in its network to discuss income protection with clients from their very first mortgage meeting.
The Income Protection Task Force (IPTF) has backed Pink's new standard compelling every adviser in its network to discuss income protection with clients from their very first mortgage meeting.
The announcement by Pink followed a series of workshops around the country and the verdict from advisers was this was the right way to proceed.
Peter Le Beau, chairman of the IPTF, said: "We would like to congratulate Pink on a very responsible and much needed approach to assessing the financial vulnerability of its clients.
"This has been missing in the process for helping people to take out home loans in many circumstances. Pink's approach is enlightened and socially responsible. We applaud it and urge other mortgage advisers to make this standard industry practice."
Pink advisers will now ask every mortgage applicant to bring in their work contract detailing their employer's sickness and absence policy, or bring in details of any existing income protection policy, along with the usual bank statements and pay slips.
Roy Mcloughlin, protection adviser and a member of the IPTF executive added"I am delighted with the approach Pink is taking to assess customer need, and the rightful emphasis it is placing on financial vulnerability should a client suffer ill-health.
"Every adviser must take this into account when assessing the options for those wanting a mortgage. It is good practice and should be followed throughout the industry."
Recent research by Royal London had found 52% of mortgage holders surveyed said they had no plan in place to pay their mortgage if they were unable to work through illness.
