Why renters are relevant to mortgage advisors

February 14, 2020 by Brendan O'Neill

Mortgage Advisors

It would be fair to say that the majority of mortgage advisors with CeMAP training do not see those who rent their homes as natural clients, but there are good reasons why advisors should broaden their base to include tenants.

Within the next three years, the number of people in the UK who rent privately is expected to rise by a further 560,000, meaning this is a growing market that advisors can tap into. Many of these people will be hoping to move away from renting and buy their own homes in the future and advisors can assist them by providing guidance about investment options and savings, so that they can build up the money needed to get a mortgage deposit.

Beyond that, those living in private rented accommodation may also be in need of general insurance cover and this is something a qualified CeMAP mortgage advisor may be able to offer them help with. For example, people in this situation may not realise that, while building insurance is the responsibility of the landlord, they themselves are liable for home contents insurance to cover their possessions in the wake of damage or theft.

The tenants themselves also carry responsibility for income protection, to ensure that they do not find themselves unable to afford their rent payments in the wake of illness, injury or loss of their job.

An advisor who has the knowledge to offer guidance in these areas will find the rental market another lucrative source of clients that they cannot afford to ignore.