The Intermediary – October 2025 - Flipbook - Page 70
MADE TO
MEASURE
MODERN PROTECTION FOR A CHANGING WORLD
by Marvin Onumonu
The shape of the mortgage market is changing,
with later life lending on the rise as more people
and with it the protection landscape. As the
look for security, flexibility, or simply a way to
familiar boundaries of ‘vanilla’ mortgage lending
help their children onto the ladder.
fade, a new set of borrowers is stepping into
focus: the self-employed, those with complex or
Protection gap
multiple incomes, clients with historical credit
Despite their resilience and adaptability, these
issues, and older borrowers seeking later life
borrowers often face financial lives that are
lending, to name a few.
anything but straightforward. For the self-
Justin Harper, chief marketing officer at
month. For those with adverse credit or limited
borrowers are moving into the mainstream.
savings, the margin for error is slim. Older
He says: “Several of our newer partners serve
communities that are typically underserved, such
as renters, small businesses, the self-employed
borrowers face different challenges around
health, care, and inheritance.
In all these cases, the old safety nets – sick
and those with specific health conditions. With
pay, redundancy cover and employer-backed
the ever-present challenges of cost-of-living
insurance – are often missing.
pressures and the legacy of Covid, we are seeing
Alan Lakey, director at CIExpert, says: “There
greater demand from all consumer segments.”
is a real lack of awareness about the value of
The Office for National Statistics (ONS) now
protection among the bulk of the consumer
counts more than 4.3 million self-employed
people nationwide. Every year, more workers
swap the nine-to-five for the flexibility, or
necessity, of the gig economy.
Rising house prices, shifting family structures,
and the legacy of past financial wobbles mean
68
employed, income can fluctuate from month to
LifeSearch, notes that these “non-vanilla”
population, especially the self-employed.
“There continues to be a belief that the
State will ‘save me’. Of course, the reality is
very different – with Employment & Support
Allowance you need to have paid enough
National Insurance contributions to qualify for
that more borrowers are stepping outside the
the benefit, and could receive up to just £92.05
old ‘one job, one payslip, one mortgage’ template.
each week. This is unlikely to be a level that many
Demographic trends are also driving change,
can rely or even survive on.”
The Intermediary | October 2025
