The Intermediary –- May 2026 - Flipbook - Page 9
the home, or providing a lump sum to relieve
financial pressure at a very difficult time.
“If you don’t understand the tangible outcomes,
Schofield has a more nuanced view: “On the
one hand, budgets are tighter than ever. Younger
borrowers are dealing with higher rents, rising
it simply looks like another bill.”
interest rates, and increased everyday costs.
Cost-of-living cuts
because it’s seen as another bill at a time when
The cost-of-living crisis has sharpened attitudes
they’re already stretched.
to finance among younger borrowers.
Rising rents, mortgage rates, energy bills, and
"That can push protection down the priority list
“On the other hand, the cost-of-living crisis has
made many people more aware of how vulnerable
everyday expenses mean that every pound is
their finances really are. They’re asking, ‘What
scrutinised. Protection can easily slip down the
happens if I can’t work? What if my income
priority list when immediate costs loom larger.
Ian Smith, mortgage and protection adviser
at CW Mortgages, says: “The cost-of-living
pressure has definitely made younger clients
stops?’ That awareness can actually open the door
to a more honest conversation about risk.”
For brokers, the challenge is to make
protection not just relevant but essential – a core
more cautious, and protection can sometimes be
part of financial stability, alongside budgeting,
pushed down the priority list. When people are
debt management and saving.
dealing with higher rent or mortgage payments,
it’s understandable that they focus on immediate
Unique risks
outgoings first. That said, it also makes some
Younger borrowers face risks that are both
clients more aware of financial risk.”
familiar and new. Income vulnerability is
p
May 2026 | The Intermediary
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