Later life lending {qualifications} ought to be a part of the usual {qualifications} to have the ability 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 total 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 simpler data or recommendation to assist their wants?’.
Key Advice suggests merging CeMAP {qualifications} with CeRER, a qualification at the moment required to advise on fairness launch, would mark a “big step” in addressing these points and breaking down silos.
The lender says that mortgage brokers have to be higher ready to assist clients’ later life lending wants and a single normal mortgage qualification would guarantee they’re in a position to contemplate the total vary of choices obtainable to debtors aged 55 and over.
While not all advisers would offer recommendation throughout all merchandise, Key notes that each one advisers ought to be outfitted with the fundamental data required to ship good outcomes.
Key additionally proposes that it ought to 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 obtainable to clients.
Key Group chief danger and compliance officer Charlotte Allen says: “Introducing a single qualification to advise on all sorts of mortgages, together with later life lending, would make sure that these over 55 are provided the correct choices based on their circumstances and be a step in direction of eradicating the lottery of outcomes being decided by what kind of adviser a buyer occurs to have interaction at outset.”
“That is totally in keeping with Consumer Duty obligations and ought to be thought of critically as a part of the FCA’s mortgage market dialogue.”
“All advisers should advise and never merely be order takers. Often clients come to advisers not having the data 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 kind, not passively facilitating a re-mortgage or product switch, contemplating all choices and being ready to problem clients on their preconceptions ought to be half and parcel of the function.”
