PARADIGM MORTGAGE NEWSLETTER SUMMER 2024 www.paradigm.co.uk/mortgages
CONTENTS 4 Paradigm Mortgage Services Introduction from Paradigm Richard Howes 6 IMLA Next Government must Show Landlords Support ‘Early and Clearly’ 8 Marsh Commercial Top Tips for Managing Professional Indemnity Insurance: A Guide for Mortgage Firms 12 Paradigm Pride in Financial Services: Creating Inclusive Spaces for Everyone Dylan Kinsella 14 FE fundinfo The Cashflow Wave About To Sweep Across The Mortgage & Protection Sector 16 Paradigm Mental Health & Movement Riona Mulherin
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By the time you are reading this, the summer and the general election campaigns will be in full swing; two events that could have a significant impact on the housing market in H2. Traditionally in the summer, the market quietens and Lenders, advisers and clients alike take stock on H1, and get ready for the final push in H2. For advisers this may be in terms of getting applications to completion, and for the Lenders it might be building that all important pipeline for the following year. As for the general election, it doesn’t in the early weeks of campaigning appear to have had any material affect on the market as a whole, or on confidence, supply or pricing, but it is still early days. Research by Rightmove suggests this to be the case, interestingly when looking at the last two elections in 2015 and 2019 we can see that the market remained steady, both before and during the election period, but there was a bounce in activity after both elections. In 2015, demand from buyers was consistent leading up to the election, which was held in May. Demand then increased the following month, and was 18% higher than the year before. Similarly in 2019, demand remained stable in the months prior, and saw an annual increase of 13% in the December, when the election took place. This was followed by an annual increase in buyer demand of 14% in January 2020. It will be interesting to see if this is the case in 2024, although one thing I’m sure will happen and that is we will get a new housing minister regardless of the result! When I think of the election and the housing market I am reminded of the famous song "Flip, Flop and Fly" recorded by Big Joe Turner in 1955. The Flip stands for…they got in again, or, they didn’t get in again, and we have someone new in! The Flop stands for… no one got in with a majority so that’s what will happen with the market! And Fly… regardless of who gets in, the market is going to “Fly” which is what we all want! But given we are about to enter the second half of the year, how would we mark the first 6 months of 2024 in terms of the housing market? I think it’s fair to say the housing market has experienced mixed performance with some notable trends and regional variations. House prices have seen modest growth overall. Between March 2023 and March 2024, the UK House Price Index reported an increase of 1.8%, although there have been significant regional variations for example Scotland and Yorkshire and the Humber have seen good growth, whilst prices fell in London and the South East according to Savills. In terms of mortgage rates and approvals, January and February saw falling mortgage rates which certainly got the market off to a flyer and raised expectations that the good old days were back! Market activity picked up early in the year, perhaps because of the pricing initiated by the Lenders, but started to stabilise by the end of the first quarter. The number of completed transactions rose but remained below pre-pandemic levels which is perhaps no surprise. Richard Howes Director of Mortgages Paradigm Mortgage Market Update 04 SUMMER MORTGAGE NEWSLETTER
As Lenders maxed their margin and managed their pipelines, prices have swung back upwards in recent months, leading many to feel the market is in a plateau state. Mortgage approvals for house purchases increased by 20% year-on-year in March 2024, reaching the highest levels in 17 months according to Savills & Knight Frank. Data from CACI which shows certain Lenders’ transactions week on week for the week ending 31st May, showed £6.9bn in total lending which is considered down for the time of year. But their overall data also shows the market is 15.4% up and £19.4bn up YTD, which gives one confidence going into H2. From a market and economic perspective, the latest data from the Bank of England in their Money and Credit report showed that net mortgage approvals for house purchases were 61,100 in April, roughly similar from the 61,300 in March. Net approvals for remortgaging decreased to 29,900 from 33,500 over the same period. The net flow of sterling money (known as M4ex) was £10.3bn in April. This was mainly driven by households’ holdings of money, which increased by £8.4bn in April, the highest flow since September 2022 (£8.8bn). Within the increase in households’ holdings of money, households deposited an additional £11.7bn into ISAs, the highest since records began in April 1999. Net consumer credit borrowing decreased from £1.4bn in March to £0.7bn in April. This was driven by lower net borrowing through credit cards, which fell from £0.7bn to £0.2bn in April, and lower net borrowing through other forms of consumer credit (such as car dealership finance and personal loans), which fell from £0.8bn to £0.5bn over the same period. Looking ahead, the market is expected to see continued modest growth, with some forecasts predicting house price increases of around 2.5% for 2024. Obviously, the market's performance remains sensitive to mortgage rates and economic indicators, plus potentially a new Government or the existing one with different ideas. 05 SUMMER MORTGAGE NEWSLETTER Marks wise for H1 maybe we would give it a 6 out of 10, what would you score it? If there is a slight hiatus in terms of activity in the short term, could you take advantage of it and use the time to look at your business? For example, reviewing processes, making changes and/or improvements for customers, looking at potential new revenue streams etc., that mean in H2 you are in the best possible place to take advantage of any “flying” that could be done! Over the six week school holidays, our marketing team will again be running our successful Summer School of Marketing once again, which is designed to look at all areas of marketing which affect your business and to help you improve engagement with your customers. In addition, maybe this is the time to give your business an MOT in areas that are crucial to the smooth running of your business, we can test your proposition in general, your technology, your client offering, your compliance, your income streams, your recruitment of staff and clients to name but a few areas with a series of constructive tests designed to analyse and change where necessary. In terms of this edition of our newsletter we have some great contributions from two of our lender partners as well as some thoughts from IMLA and insight from our own Riona Mulherin on mental health which I hope you will enjoy. Many will have read in previous editions of my belief in the area of cashflow planning principles for mortgages as part of the advice process. I think it has real merit and as an added service it can help with client relationships, communication, income and understanding. In this edition we have the first of a series of articles on this subject from FE Cash Cacl which I hope you find informative and of value. If you would like to discuss the principles in this area further please get in touch. Please contact either your Relationship Manager or myself if you would like to learn more about any of the above, we would be delighted to discuss the pertinent areas with you.
The screw has been tightening on the UK’s buy-to-let landlords since Conservative Chancellor George Osborne announced changes to the tax regime in 2015. Since then, landlords have been pummelled by a volley of tax hikes, from the introduction of the 3% Stamp Duty surcharge on second homes in 2016 to the tapered removal of mortgage interest tax relief which began in 2017. The latest blow, the abolition of Multiple Dwellings Relief from June 1st won’t impact many, but will cost those landlords affected £385m. Buy-to-let landlords are now the only small businesses in the country taxed on their turnover rather than profit. Little wonder that many have quit the market, or are tempted to do so. Since last January, like many borrowers, buy-to-let investors have faced the added burden of higher interest rates, leading many to predict an acceleration in the numbers leaving the market. The National Residential Landlords Association warned in March that one in 10 landlords were likely to quit the sector. While some might sell to other landlords, any loss of rental stock would deepen the existing supply/demand imbalance in the sector, which has resulted in rents hitting record highs, with up to 25 tenants chasing each new rental property that comes to market in some areas. While the numbers of landlords exiting the market may be growing, this should be put into context: 80% of landlords own only one or two properties – representing 61% of the private rental stock. We have not yet seen the predicted mass flight of landlords from the market, largely due to the strength of that demand, combined with landlord resilience. Many are hanging on in there, making marginal or zero profit, hoping for lower interest rates to ease the pressure in future. Some may be taking the opportunity to re-structure and re-finance their businesses, running their rentals as companies and thereby taking advantage of a less punitive tax regime. But this takes time and costs money. So while landlords are by no means leaving the market in droves, the fact that some are selling up should give a clear warning to the next government, which surely must take care to head off any such exodus at the pass to stem the loss of badlyNext Government must Show Landlords Support ‘Early and Clearly’ 06 SUMMER MORTGAGE NEWSLETTER Kate Davies Executive Director Intermediary Mortgage Lenders Association
needed rental stock, prevent rents from skyrocketing further, and thousands more people turning to the state for housing, or even risking homelessness. The buy-to-let market took off following the enactment of the Housing Act 1988, which introduced Assured Shorthold Tenancies. These encouraged more property owners to rent out homes which could otherwise have sat empty – because they provided some assurance that tenants could be given notice to leave when required by the landlord. That Act was passed under Margaret Thatcher’s Conservative government – so it’s interesting that what has come to be perceived as a ‘war on landlords’ has since been waged by a Conservative administration. But landlords don’t seem to have much faith the prospect of a Labour Government either: Research carried out in May by Landbay revealed that 48% of landlords have concerns about a change of government. Some believe the Labour party is traditionally ‘landlord-unfriendly’, while one respondent said: “Everyone is anti-landlord. With a lack of affordable housing, we are the scapegoats. They have increased our tax and compliance burden.” Whoever forms the next government must act quickly to allay landlord fears of further tax increases and regulatory tightening. And they must assure private rented sector providers that they do not buy into the stale old narrative of ‘rich, greedy landlord/poor, put-upon tenant’ which has dominated for too long. Of course, tenants’ needs and concerns must be understood, but it is also important to understand the reality facing landlords. The IMLA Landlord Survey published last December revealed a market predominantly supplied by small businesspeople who will struggle to break even in the next two years. Those with mortgages may see their cost of borrowing soaring by as much as 80% as they refinance off historically low fixed rates. The research also found that most landlords do not have significant resources to draw on outside their rental business. On average, landlords’ non-rental income is roughly in line with tenant income, except in London where tenants earn substantially more. The new government must understand this, and acknowledge the essential role buyto-let landlords play in the PRS. Of course, there are some bad eggs in the landlord community, but the focus should be concentrated on removing the few problem providers, while supporting the majority, good landlords who genuinely care about their tenants, and are trying to run a viable business. Labour has talked about expanding owner occupation and the social rented sector. These are both laudable aims, which everyone would welcome if Labour does come to power in July. Indeed, we desperately need to see a rapid increase in the provision of social rented housing. But neither of these aims needs to come at the expense of the PRS, which currently provides a home for almost 20% of the UK’s households - more than the social rented sector, which provides approximately 18%. According to Landbay’s research, only 12% of buy-to-let landlords said in May that they planned to vote Labour, 31% Conservative and 5% Lib Dem. Some 41% said they had not decided who to vote for at that time. At the time of writing, no political party had made any noises about support for landlords in order to attract their vote. In any case, soundbites and platitudes are not what the sector needs, even if one party or another were minded to offer them. There is an opportunity to be grabbed here: we need a cogent, cohesive, long-term plan to address the chronic housing shortage in the UK, which starts immediately but looks beyond the next few five-year parliaments. That plan needs to boost housebuilding for owner occupiers, private renters and social renters alike. Buy-to-let landlords need to be included, and the new administration would be wise to indicate - early and clearly - their support for these small businesspeople who provide an essential part of the UK’s housing landscape. 07 SUMMER MORTGAGE NEWSLETTER
As a mortgage firm, you play a pivotal role in guiding clients through one of the most significant financial decisions of their lives. With such responsibility, it’s important you are fully covered for the complex work you do. Professional indemnity (PI) insurance is your safety net, designed to protect you and give you the confidence you need to do your work. To ensure you’re getting the most out of your PI insurance and safeguarding your business effectively, we’ve provided some essential advice to help you manage your policy in the best possible way. Making PI insurance work for you 1. Assess your risks thoroughly: • Take the time to carefully evaluate the specific risks associated with your mortgage firm activities. This includes potential legal claims, financial advice errors, and compliance issues. • Consider the size and scope of your business, the complexity of the mortgage products you handle, and the profile of your client base. 2. Choose the right coverage level: • Ensure your PI insurance coverage is adequate to cover potential claim - underinsurance is more common than you might think and can lead to significant out-of-pocket expenses, which can be avoided with the right level of cover. • Evaluate the policy limits and make sure they align with the potential financial exposure of your business. 3. Review policy exclusions: • Scrutinise the exclusions in your policy to understand what is not covered. Common exclusions may include certain types of financial advice or claims arising from intentional misconduct. • Discuss any unclear exclusions with your broker to avoid surprises when filing a claim. 4. Regularly update your policy: • As your business grows or changes, it’s so important to update your PI insurance to reflect new risks and increased business activity so that you remain fully protected. • When you’re busy with the day-to-day running your practice, it’s easy to put aside your PI until renewal. However, regular reviews ensure your coverage keeps pace with your evolving business needs, helping to make sure you don’t get caught short should you ever need to make a claim. 5. Understand the claims process: • No matter how good you are at your job, mistakes can occur, despite your best efforts. Make sure you familiarise yourself with the procedure for making a claim. Knowing the steps can make all the difference in helping to expedite the process and improve the chances of a successful claim. Top Tips for Managing Professional Indemnity Insurance: A Guide for Mortgage Firms 08 SUMMER MORTGAGE NEWSLETTER Jacqueline Buss Head of Office for Bristol Enterprise Marsh Commercial
• Keep detailed records and documentation of all client interactions and advice given. It sounds obvious, but it’s one of the most important things you can do - these records can be crucial in defending against a claim. 6. Seek professional advice: • Consult with insurance brokers who specialise in PI insurance for mortgage firms. They can provide tailored advice and help you find the best policy for your needs, as well as assist in negotiating optimal terms and premiums. • Make sure your broker works with insurers that have long-standing experience in underwriting mortgage firms and who aren’t likely to pull out of the market. Following these simple steps can make a significant difference when it matters most. As well knowing how to effectively manage your PI, it’s just as important to know what to watch out for. Here we cover off some of the more common pitfalls we see day-to-day in our role as a PI insurance broker. What to watch out for 1. Underestimating coverage needs: • One of the most frequent mistakes we see is underestimating the level of coverage you need. Always err on the side of caution and opt for higher coverage if in doubt - it will help you to avoid any significant financial exposure that may come with inadequate cover. 2. Overlooking the fine print: • It can be tempting to gloss over the fine print – especially when you’re busy. But understanding exactly what’s covered and what’s excluded can mean the difference between a claim being accepted and a claim being denied. • Your broker is there to help clarify any ambiguous terms – lean on them for advice and guidance to make sure you know what’s what. 3. Not disclosing all relevant information: • Non-disclosure of material facts can void your policy or lead to claim rejections. Always provide comprehensive and accurate information when applying for or renewing your insurance. 09 SUMMER MORTGAGE NEWSLETTER 4. Delaying claims notification: • Any delays in notifying your insurer of a potential claim can complicate the claims process. • Quick notification is central to a smooth and successful claim resolution. 5. Overlooking the importance of run off insurance: • If you retire or leave the industry, claims can still arise from past activities. Run off cover makes sure you stay protected after you stop operations – providing you with much needed peace of mind. • Discuss run off cover options with your broker if and when you plan to exit your business. Securing and maintaining effective PI insurance doesn’t have to be complicated or take up a lot of time. By following the above advice, it will help to ensure the long-term stability and reputation of your business – as well as give you confidence that you’re fully protected. By understanding your risks, choosing the right coverage, avoiding some common mistakes, and regularly reviewing your policy, you can ensure your PI insurance works hard for you. Get in touch As Paradigm’s Strategic Partner for PI, Marsh Commercial is committed to making sure you have access to competitive PI insurance tailored to your specific needs. If you need any assistance reviewing your current policy or would like to discuss your PI requirements, please speak to one of our experienced advisers by calling 0330 818 7676 or email [email protected]. Marshcommercial.co.uk/paradigm This is a marketing communication. Paradigm Partners Ltd is an Introducer Appointed Representative of Marsh Ltd and Marsh Commercial is a trading name of Marsh Ltd. Marsh Ltd is authorised and regulated by the Financial Conduct Authority (FCA) for General Insurance Distribution and Credit Broking (Firm Reference Number 307511). Copyright 2024. Registered in England and Wales, Number: 1507274. Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU.
For Intermediary use only. Content correct at time of publishing. YOUR MORTGAGE WILL BE SECURED ON YOUR PROPERTY AND YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Firm reference number: 157260. Assess many types of complex income Airbnb considered Top slicing available harpendenbs.co.uk/intermediaries SCAN THE CODE TO VISIT OUR INTERMEDIARIES PAGE HOLIDAY HOME/SECOND HOME • We consider a range of incomes, including pension, trust, investment and maintenance as well as 100% of bonuses, overtime and commission (2 years proof required) • We consider latest years income for self-employed applicants • No maximum age • 75% LTV available on IO and 80% available on repayment HOLIDAY LET • 90 days personal usage allowance per annum • Airbnb considered • We lend in town and city centres as well as coastal areas • We lend on properties above commercial units • Top slicing • Minimum income of £30,000 required • Up to 3 properties on one title considered • 75% LTV available on IO and 80% available on repayment If it’s complex, we might find a way
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This Pride month, as we reflect on our recent podcast episode covering Pride and Mental Health Awareness week, I wanted to share some thoughts on the deep connection between these two topics. If you’ve not heard these episodes yet, you can listen here. These are topics close to my heart, so I’m thankful for the opportunity to share some of my thoughts and experiences. For many LGBTQ+ individuals, the journey to self-acceptance can be fraught with challenges that significantly impact our mental health. The fear of rejection, stigma, and discrimination can lead to higher rates of anxiety, depression, and other mental health issues within our community. This is why Pride is so essential—it's not just a celebration; it's a crucial space where we can express our true selves without fear of judgment. The Mental Health Foundation highlight results from a study by Stonewall, which found that: • Half of LGBTQ+ people had experienced depression • 3 in 5 had experienced anxiety • 1 in 8 LGBTQ+ people aged 18 to 24 had attempted to end their life • Almost half of trans people had thought about taking their life During our Pride podcast, we touched on how Pride events provide supportive environments that can give a positive boost to our well-being. Being surrounded by a community that embraces us for who we are can be incredibly uplifting and affirming for those who can sometimes feel alienated or alone. Fostering a sense of belonging is vital for everyone’s mental health, not just those in the LGBTQ+ community. Pride helps raise awareness and reduces stigma, making it easier for people to seek mental health support. By challenging stereotypes and promoting acceptance, we create safer spaces where individuals can thrive both mentally and emotionally. In this newsletter, you will also find a mental health article which explores the idea that often, people seek financial advice during very stressful times in their life, such as bereavement, moving home, financial trouble, etc. This stress can often be compounded if there are other factors that may make the process even more stressful - there are many neurodiverse queer people who navigate these overlapping experiences. Inclusivity that goes beyond a tick box exercise and truly considers everyone's unique needs can create a more supportive environment for all, including people working within the industry, and the people we serve. In the financial industry, it's crucial that we continue to advocate for and implement Pride in Financial Services: Creating Inclusive Spaces for Everyone 12 SUMMER MORTGAGE NEWSLETTER Dylan Kinsella Marketing Manager Paradigm
inclusive practices. According to the FCA’s Financial Lives Survey, LGBTQ+ consumers are almost twice as likely to lack confidence in the UK financial services industry compared to the general population. It is important to consider the underlying circumstances that many people face that may result in this figure. LGBTQ+ customers are more likely to be worse off financially, with a higher likelihood of being in a lower paying job or not having financial support from family. This statistic underscores the need for more inclusive and understanding approaches within our field. Depending on the circumstances, LGBTQ+ customers or customers with mental health conditions could be classed as vulnerable customers. Characteristics of vulnerability may result in consumers having additional or different needs and may limit their ability or willingness to make decisions and choices or to represent their own interests. These consumers may be at greater risk of harm, particularly if things go wrong. Trans and non-binary individuals face unique challenges within financial services. For example, paperwork that doesn't match their gender identity can create significant barriers. This can cause issues with everything from opening bank accounts to applying for loans and mortgages. It can also complicate matters related to protection products, where discrepancies between one's legal documents and their lived identity can lead to delays and additional scrutiny. Whilst most Providers will provide cover for trans and non-binary people, it is important to consider what the process looks like with different Providers to minimise discomfort for trans and non-binary customers, making the process as stress-free as possible. Our protection helpdesk is on hand to help with any queries you may have around this. These difficulties highlight the importance of having systems and processes that are flexible and inclusive. Everyone who operates within the financial services industry needs to be proactive in understanding and addressing these challenges to ensure that all customers feel respected and supported. Personally, I've been fortunate not to face significant issues in our industry, but I know many who have. From assumptions about relationships to misgendering, these experiences can erode trust and confidence. I believe that when we approach inclusivity with genuine intent, we foster a culture where everyone feels seen, heard, and valued. Pride and mental health awareness are deeply intertwined. Both aim to promote acceptance, reduce stigma, and provide the support needed for individuals to lead authentic, healthy lives. As we continue to celebrate Pride and advocate for mental health, let's commit to creating spaces that welcome and uplift everyone. Together, let's continue to pave the way for a brighter, more inclusive future in financial services and beyond. If you or anyone you know is struggling with the issues discussed in this article, please speak to someone who can help, whether that is a family member, friend, or there are several charities that can help. You may find some of the resources here helpful. (source: https://www.mentalhealth.org.uk/explore-mental-health/statistics/lgbtiq-people-statistics) 13 SUMMER MORTGAGE NEWSLETTER Scan to listen here
Cashflow forecasting has quickly become an integral tool within the financial advice industry. A rather obscure area of financial advice 10 years ago, it’s growth in the last decade can be accredited to a series of regulations, from RDR to the more recent Consumer Duty, that have gradually forced financial advisers to focus on the quality of their advice and how they justify their fees. With Pension freedoms also pushing more investors to seek regulated financial advice, cashflow providers have been busy building their software, to cater for the growing demand of investors wanting clarity on the future direction of their assets. After a decade of rapid growth and adoption, some cashflow providers are now turning their attention to the mortgage and protection market. A cashflow forecast simply helps a client understand their current financial position and gives them a view of their wealth in future years. The tooling itself doesn’t fall under any regulatory body, so a user doesn’t have to be qualified to provide this level of analysis. For these reasons, advisers outside of wealth management are starting to explore these tools themselves and use them to justify the service that they provide. Take Ryan and Samantha Cole for example. Their current wealth is £320k and at retirement, their pots are projected to be worth £526k. Given their current spending habits, the forecast can predict that after retirement, their wealth will gradually erode, but won’t run out. The Cashflow Wave About To Sweep Across The Mortgage & Protection Sector 14 SUMMER MORTGAGE NEWSLETTER David Scholes Head of New Business FE fundinfo Ryan is the principal earner though, so what would this look like if Ryan were to sadly pass away when he’s 60. The forecast now shows a different future, one where Samantha will struggle financially on her own, running out of capital on her 79th birthday, 7 years before her average life expectancy of 86. We can use cashflow forecasting to mimic insurance contracts, in this case that pay out on Ryan’s death and provide a powerful visual to our clients that for a small monthly premium, they can protect their future.
15 SUMMER MORTGAGE NEWSLETTER Cashflow charts can also aggregate all the client incomes and expenses to judge the affordability of new mortgages John and Sarah are looking to get a new mortgage and want to understand how their finances would be impacted by rising or falling interest rates A cashflow money in/out chart helps our couple visualise their yearly income against their aggregated expense during the mortgage term. Sarah and John can quickly understand their surplus income and judge the affordability of the mortgage, combined with their current spending habits The chart can be quickly adjusted to show the impact on this surplus from interest rate movements and or job loss/promotions. Equity release charts are also a powerful example of how versatile cashflow tools can be. Advisers can plot the value of a clients house (green) whilst showing the increasing level of interest (red) accruing against the house An adviser can then adjust the various inputs, such as the expected house price return, to show clients how the future increase in their property value can in part pay off their original debt and interest payments With a growing focus on justifying fees and a desire to be less transactional, cashflow forecasting could be an integral part of the mortgage & protection industry. FE CashCalc is the UK’s market leading cashflow tool and the company are preparing to start expanding their operations into this new frontier. With a new client portal and mortgage fact find, FE CashCalc will attempt to streamline an advisers data collection and help them produce valuable output for their clients. If FE CashCalc are successful, they will simply be the first wave, followed closely by the plethora of other tools that compete in this space. To explore further, take a look at this short video that illustrates how to use FE CashCalc with your mortgage and protection clients.
Following the introduction of our mental health section within our newsletters, I’m delighted to bring you the next instalment, this time looking at movement and physical activity - following on from ‘Movement’ being the theme of Mental Health Awareness Week 2024 which took place in May. This theme is relevant to our industry, where the mental wellbeing of employees directly influences productivity, decisionmaking, and overall business performance. The reality is that your mental health is as important as your physical health, but the two are intrinsically linked. Regular physical activity is known to have a big impact on our mental health, our quality of life, and also our wellbeing. It also plays a crucial role in the prevention and management of various conditions, including heart disease, stroke, diabetes, and breast and colon cancer, and more. However, despite this, more than a third of UK adults don’t do the recommended amount of activity. You can read more about this in the Mental Health Foundation’s report here. So, lets quickly recap on why physical activity is crucial for mental health: • Releases endorphins which naturally lift your mood and reduce stress, helping you to feel calmer. • Can boost your self-esteem and selfconfidence. • Can improve your concentration and productivity and can enhance brain functions like memory and attention. • Contributes to better sleep quality, can help you to relax and also reduce fatigue. • Can have a positive impact on any stress or anxiety that may be being experienced. • Can help you to connect more with nature, or with other people, e.g. if you go for a walk with someone and catch up. Many of us will sadly know from personal experience that the pressures of the industry, from long hours to the high-stress environment, can take a toll on employees’ mental well-being. As advisers you will know that often the trigger for someone seeking financial advice can be a stressful life event, such as divorce, bereavement or financial pressures. Of course, it follows that the professionals who provide services in these emotionally charged situations may struggle, and sometimes manifest mental health issues of their own. In turn, this may affect performance and can ultimately lead to absences and impact upon a firms’ income. In fact, Deloitte found that in the UK, “presenteeism is the largest contributor, where people work in spite of illness and not perform at their full ability, which is costing employers around £24 bn annually”. Furthermore, last year’s Mortgage Industry Mental Health Survey discovered that nearly a quarter (23%) of participants classed their overall state of mental wellbeing as either ‘poor’ or ‘of concern’, while nearly one third (30%) had seen their work/ life balance either ‘somewhat worsen’ or ‘greatly worsen’. Here are some quick, easy ways that Mental Health & Movement 16 SUMMER MORTGAGE NEWSLETTER Riona Mulherin Director of Marketing & Operations Paradigm
employers can support their teams’ mental health and wellbeing: • Creating a safe environment and workplace culture that encourages people to bring their ‘whole self’ to work and puts people at ease. • Encouraging open communication about mental health both in an open environment and between line managers and their team members, who should have regular wellbeing check-ins. This can help to reduce the stigma that may exist around discussing this openly. • Mental Health training, for example the Mental Health First Aider courses that are available – and which I personally have found to be extremely valuable and can educate individuals on how to spot signs of and support those experiencing poor mental health. • Providing access to support, for example via employee benefit programmes, such as Help@Hand which gives access to counselling and mental health support. • Developing company policies that are supportive of those who may be experiencing poor mental health, but also policies that will positively impact upon the mental health of your team. • It could be as simple as providing useful resources that promote and educate on mental health matters, or taking part in activities that raise awareness, for example ‘My Whole Self Day’ which I have spoken about in a previous article. So, back to getting more active... I think we all know that regular physical activity can make us happier and healthier, but in reality, finding the time can be quite difficult. By building movement into our working day, we can have a positive impact on productivity and focus. I have seen some great examples of this popping up on my LinkedIn recently, for example I know our Senior Relationship Manager Sarah has been for dog walks with other account managers helping to get some fresh air, I’ve seen some of our firms encouraging their BDMs to come for a walk with them after lunch and to catch up then, I’ve even seen some people going for runs! If you don’t get much ‘free’ time, then building it into your working 17 SUMMER MORTGAGE NEWSLETTER day is a great idea to help get you get your steps in! Encouraging employees to engage in physical activities, whether it’s a midday walk or a company-wide activity, can lead to better mental health outcomes. Indeed, by fostering a culture that values movement, you can expect to see three key benefits such as: • Reduced absenteeism • Enhanced productivity • Improved morale As we reflect on Mental Health Awareness Week 2024, it’s clear that movement and physical activity are not just personal health goals but are also imperative for the health of your team and arguably your business. If you haven’t already listened, we did a short podcast episode on this episode with Aimie Jo Shutt from Santander, that looks at this topic in greater detail. If you’ve not had chance to listen yet, please click here to listen. Finally it would be remiss of me to not mention the Walk & Talk 2024 that Jason Berry and Jonathan White from the ‘Mortgage Industry Mental Health Charter’ undertook during Mental Health Awareness Week, raising money for UK charities who specifically support Mental Health and Wellbeing by walking 125 miles from Tamworth to Canary Wharf, a truly amazing achievement. Bob Hunt, our CEO, and Richard Howes, our Director of Mortgages, were delighted to take part in day one of the walk. They’ve raised over £6,000 so far which is a fantastic achievement; here is the page if you’d like to consider donating. If you have any questions, issues or would just like to speak to someone, please do get in touch. I am conscious that many people have their own mental health experiences, and some like to keep those very private whereas others are keen to share their experience. If you need someone to talk to about anything that is upsetting you, you can contact trained professionals at Samaritans 24 hours a day, 365 days a year. You can call 116 123 (free from any phone) or email [email protected].
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