Written by Zara Bray, distribution director for the Mortgage & Protection Network at Quilter Financial Planning
Protection is one of the areas where advisers add the greatest value for first-time buyers, but it is also one of the most difficult conversations to land well. By the time clients reach this stage, they are often emotionally invested and financially exhausted,, and advisers are having to balance sensitivity around cost with the need to ensure the mortgage is genuinely sustainable over the long term. The best advisers are weaving protection needs into the conversation from the very beginning of the journey.
In practice, advisers are increasingly dealing with first-time buyers who are stretching affordability to its limits. Larger loan sizes, longer terms and higher day-to-day living costs mean there is very little resilience built into many cases. That puts even greater importance on advisers’ stress-testing not just the mortgage, but what happens if income is disrupted. Income protection and critical illness cover are no longer “nice to have” discussions; they are core parts of responsible mortgage advice in today’s market.
Advisers are also navigating more complex family dynamics than in the past. Gifted deposits, family loans and informal support arrangements are now commonplace. That means protection discussions often need to consider the wider financial ecosystem around the client, not just the borrower themselves. Advisers play a key role in helping clients understand the implications of these arrangements and in putting appropriate safeguards in place to protect both the client and their family.
There is also a practical challenge around sequencing. Advisers are conscious that clients can experience “cost overload” towards the end of the process, having already absorbed valuation fees, legal costs and moving expenses. Many advisers are responding by taking a phased approach to protection, prioritising the most critical risks initially and building cover over time as clients’ finances stabilise. That flexibility is essential to ensuring clients engage with protection and should result in a life-long relationship between adviser and client, allowing needs to be discussed as life events unfold.
As first-time buyer ages rise and mortgage terms extend well into later life, the advice challenge is only going to intensify. Advisers will remain central to helping clients understand that protection is not about pessimism, but about preserving the home and lifestyle they have worked so hard to secure. When integrated properly into the advice journey, protection becomes part of good financial planning, not an add-on, and advisers are uniquely placed to deliver that in a way that is both practical and proportionate.
