ERMA has been set up as a subsidiary and appointed representative (AR) of JLM, and currently has five specialist advisers who can offer equity release, standard mortgage, and later life lending advice.
The launch follows a pilot phase for the firm, which will conduct its operations on a fixed-fee structure rather than one based on a percentage of the loan.
JLM said it sees a growing demand for equity release and later life products – but argues that advisers in the market should be able to advise on the increasing amount of traditional mortgage options available to those in later life, as well as on equity release matters.
As such, new advisers joining ERMA will be required to advise on equity release, standard mortgages, as well as later life loans.
Advisers within the JLM network are also able to refer and introduce cases to ERMA for specialist advice.
Furthermore, ERMA, a member of the Equity Release Council, will charge a fee of £995 regardless of the loan amount, and clients will pay this fee at completion.
JLM has been outspoken about the use of percentage-based fee in the equity release before – arguing that they could potentially amount to high fees, while others in the sector have defended the practice.
Rory Joseph, director of JLM Mortgage Services, commented: “You only need to look at the growing lending figures in equity release to see this is a product area increasingly in demand as more and more potential clients look to use their home as an asset.”
He continued: “We wanted to ensure we had a specialist advisory practice that was able to cover all product bases, not just equity release.
“This is important because an equity release product is not always the most suitable.”
“With ERMA, we believe our clients are going to get the right product for their needs and circumstances every single time,” Joseph added.
Sebastian Murphy, head of mortgage finance at JLM Mortgage Services, also commented: “We begin with five advisers under the ERMA umbrella but we believe the growing demand, and increased interest from advisers themselves, will mean we’ll develop our offering and adviser numbers very quickly.”
Murphy added: “If there are any advisers interested in talking to us about how we can support them in this sector, please do get in contact.”
