Mortgage-linked protection products planned by Future

Specialist lender Future Mortgages is considering entry into the mortgage-related critical illness and income protection markets in a bid to boost its service to IFAs and mortgage brokers, writes Robyn Hall.

Previously the firm has always shied away from the protection market, billing itself as a dedicated mortgage company.

But Michael Bolton, Future Mortgages marketing manager, said: "We are always looking to provide the right product for today's market.

"Income protection and critical illness are becoming increasingly important products for the consumer. We are always looking at the best possible way to serve our clients' needs."

The industry's trade body, the CML, has been pushing hard under the new regulatory regime to ensure all borrowers' best interests are served and protection products are increasingly in the spotlight.

The move follows the company's admission that it was weighing up the benefits flotation on the stock market would bring as a means to catapult the business well into the next millennium and beyond.

Theoretically that would free up the necessary capital for the lender to launch into the critical illness and income protection markets.

Bolton added: "As we look to 2000 and beyond there are a number of ways this business could go.

"It could be anything from selling out to the likes of one of the big players. Or if we realised there was more money in floating then that would be an alternative."

Future Mortgages entered into the non-conforming loan market in November 1996 with the backing of US based investment bank Friedman, Billings, Ramsey & Co (FBR). FBR is listed on the New York Stock Exchange.

With the experience and backing of FBR the possibility of Future Mortgages also listing on a stock exchange would seem to be a viable one.

The company has been investing heavily in information technology and improving its own IT infrastructure to exploit the boom expected in financial services over the internet.