Later life lending {qualifications} should be part of the standard {qualifications} to be in a position to advise on mortgages, Key Advice says.
The fairness launch adviser’s feedback are in response to the Financial Conduct Authority’s Future of the Mortgage Market Discussion Paper, which closes its session on 19 September.
The paper stresses the necessity to make sure that older debtors are being made conscious of the complete vary of borrowing choices.
Some of the questions highlighted within the FCA’s paper, which launched in June, embody ‘How efficient and holistic is recommendation on later life lending?’ and ‘How can our guidelines assist debtors to entry more practical info or recommendation to assist their wants?’.
Key Advice suggests merging CeMAP {qualifications} with CeRER, a qualification presently required to advise on fairness launch, would mark a “enormous step” in addressing these points and breaking down silos.
The lender says that mortgage brokers should be higher ready to assist prospects’ later life lending wants and a single standard mortgage qualification would guarantee they’re in a position to contemplate the complete vary of choices out there to debtors aged 55 and over.
While not all advisers would supply recommendation throughout all merchandise, Key notes that each one advisers should be outfitted with the fundamental information required to ship good outcomes.
Key additionally proposes that it should be obligatory for Continuous Professional Development (CPD) to incorporate a component of content material particular to later life lending so advisers can hold updated with all choices out there to prospects.
Key Group chief threat and compliance officer Charlotte Allen says: “Introducing a single qualification to advise on every kind of mortgages, together with later life lending, would be certain that these over 55 are supplied the best choices in line with their circumstances and be a step in direction of eradicating the lottery of outcomes being decided by what sort of adviser a buyer occurs to interact at outset.”
“That is absolutely according to Consumer Duty obligations and should be thought-about critically as part of the FCA’s mortgage market dialogue.”
“All advisers should advise and never merely be order takers. Often prospects come to advisers not having the knowledge they should be making knowledgeable choices.”
“Whether you might be an fairness launch specialist or a mainstream adviser, not defaulting to at least one product sort, not passively facilitating a re-mortgage or product switch, contemplating all choices and being ready to problem prospects on their preconceptions should be part and parcel of the position.”
