Supporting vulnerable clients through major life events
June 2025
According to the Financial Conduct Authority (FCA), nearly half (47%) of UK adults have one or more characteristics of vulnerability1. While some vulnerabilities stem from long-term conditions or disabilities, many arise from life events such as bereavement, divorce or sudden job loss which can leave people feeling emotionally overwhelmed and financially uncertain.
These sudden life events can significantly impact a client’s ability to make financial decisions – even if they were previously financially secure. The cost of living crisis has only heightened this with 72% of adults reporting a rise in their living expenses over the past month2, and for brokers, recognising and supporting vulnerable clients has never been more important. Under the FCA’s Consumer Duty, brokers and lenders have a clear responsibility not only to recognise vulnerability but to respond with care and offer tailored support that helps deliver good outcomes to their clients3.
In today’s climate, financial vulnerability can affect anyone. Significant events such as bereavement, the breakdown of a relationship, or an unexpected loss of income can affect even the most financially stable individuals. As brokers, it’s essential to recognise that vulnerability is not always visible – and it’s becoming more common.
How life events can lead to vulnerability
Vulnerability isn't fixed – it can affect anyone at any point in life. Major life events such as relationship breakdown or redundancy often happen unexpectedly, leaving people emotionally distressed and financially uncertain. These circumstances can also affect how well clients can absorb information, consider options and make confident decisions.
Life events often coincide with other challenges such as reduced mental resilience, heightened stress, or limited financial resources – all of which can affect how clients engage with advice or support. Since vulnerability isn’t always visible or openly discussed, it’s essential for brokers to remain alert to behavioural cues and signs of distress, and to adapt their approach with sensitivity and care.
Navigating sensitive conversations
When a client is dealing with a major life event, it’s essential for brokers to approach conversations with empathy and clarity. Asking thoughtful, non-intrusive questions builds trust and helps tailor support to each client’s needs. Key questions might include:
“Have there been any changes in your personal or financial circumstances recently?” This open-ended question encourages clients to share any new changes without feeling pressured or judged.
“Would you prefer more time or a different format for reviewing your options?” Offering flexibility ensures clients don’t feel rushed or overwhelmed.
“Is there anyone else you’d like involved in conversations about your mortgage?” Some clients may feel more comfortable with a trusted friend or family member present, particularly during emotionally challenging times.
By asking the right questions and offering tailored support, brokers not only meet their obligations under the FCA’s Consumer Duty, but also demonstrate genuine commitment to their clients’ wellbeing during difficult times.
Practical resources for brokers
To support clients through vulnerable periods, there are several practical tools and services available to brokers. One effective way to personalise support is simply to add a note, sometimes called a ‘flag’ to a customer’s record. Many lenders allow brokers to request these flags where appropriate, helping to ensure clients receive the extra consideration they may need during challenging times. Flags might include allowing more time for responses, simplifying communication, or involving a trusted third party. In cases of bereavement or other significant life events, specific flags ensure that clients are treated with greater sensitivity and care.
Brokers can also help clients navigate the support available under the Mortgage Charter. This includes measures such as temporary interest-only arrangements, payment holidays, or term extensions — all of which can offer vital breathing space for clients experiencing financial pressure due to a life event.
Additional services, such as power of attorney and bereavement support, can be invaluable for clients managing someone else’s affairs or coping with the loss of a loved one. Helping clients understand and access these options can provide reassurance and a greater sense of control during emotionally complex times.
It’s also essential that brokers obtain clear, informed consent before sharing personal information or requesting support on a client’s behalf. Doing so not only ensures transparency and trust, but also safeguards both the client’s privacy and the broker’s responsibilities under data protection and regulatory standards.
Vulnerability can affect anyone, and brokers must be ready to support clients facing emotionally or financially complex circumstances. By using personalised flags, maintaining clear and compassionate communication, and knowing when to escalate support, brokers can make a meaningful difference – helping vulnerable clients navigate challenges and move forward with confidence in their housing journey.
References
- https://www.fca.org.uk/data/financial-lives-2022-early-survey-insights-vulnerability-financial-resilience
- https://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/bulletins/publicopinionsandsocialtrendsgreatbritain/latest
- https://www.fca.org.uk/news/news-stories/review-firms-treatment-customers-vulnerable-circumstances
