The latest Mortgage Solutions People’s Poll asked mortgage advisers if they held the appropriate qualifications needed to advise on equity release.
Almost two-thirds of respondents (65%) said they were currently unable to offer equity release to clients compared with fewer than one-in-three (29%) currently qualified to advise.
Just 6% of those surveyed said they were currently in the process of gaining equity release qualifications.
Simon Chalk, equity release technical manager at Age Partnership, said a problem for the industry was that many brokers who were qualified did not practice.
“The Equity Release Council reckons that of the 7,000 individuals believed to be holding an equity release qualification just 2,000 are practising their craft,” he wrote in a blog for Mortgage Solutions.
“No-one seems to know who the 5,000 non-practising advisers are but my guess is that mortgage brokers will make up the rump. For certain there will be IFAs that have taken the exam just to top up their credits, with many viewing it as a soft option.
“Attaining the qualification evidently hasn’t meant more numbers practising, so what can the industry do to encourage advisers to get involved in equity release? And if that’s what is really necessary – could getting too many advisers on board dilute the quality of advice?
“I have my own theory as to why the numbers engaged are so small; quite simply equity release falls between two stools with mortgage brokers viewing it as a retirement product and IFAs as a mortgage of sorts. So into the void steps the specialist.”
Focus appears to be turning more towards older borrowers with Key Group today announcing the launch of retirement lending and wealth and retirement options divisions
The group is aiming to launch these new divisions by April 2015 with its retirement lending range including equity release and secured loans into retirement.
Colin Taylor, chief executive of Key Group said: “Launching new focused distribution arms makes strategic sense given the rapid growth of both sides of the business and ensures we can maintain the focus on expansion.”
