"But the fact is equity release is a different kettle of fish to buying a house. It’s not an ancillary product to a mortgage, it’s a whole new area."
The regulator had originally considered introducing the new qualification to replace the current system in which advisers must have mortgage qualifications up to level three in order to sell equity release.
I can understand where the regulator is coming from. Nobody wants consumers to be receiving advice from an adviser that has cut corners. Being good at your job in any industry takes time and dedication and those people who reach the top of their game do so because they have put in the time and effort to get there. They have spent hours and months and years gaining the necessary knowledge. And this is certainly true of mortgage brokers. Young blood can have some fantastic sales skills but some of the very best advisers I know are the ones who have spent years honing their craft.
There is an element of consumer protection in having only very experienced and qualified advisers getting involved in equity release.
But the fact is equity release is a different kettle of fish to buying a house. It’s not an ancillary product to a mortgage, it’s a whole new area. And in a market that is already suffering from a distinct lack of mortgage brokers, rather than expecting those already put upon brokers to be the only people who are able to offer equity release we need to come up with a way which allows new fresh talent to make their mark.
Equity release is a growing market. Indeed according to latest figures from the Equity Release Council the total value of lending reached £697 million in 2016, a rise of 77% and demand this year is high. Mortgage brokers can’t be expected to meet that demand alone.
A separate equity release qualification would allow more people looking to explore equity release to deal with advisers that are fully qualified in that area thus removing some of the pressure from brokers and help the equity release market to reach its full potential. To me it seems the most sensible option.
