The borrowing forecast shows the impact of different interest rates, ad hoc fees and penalty free repayments as well as any potential future drawdowns, on top of the cost of a specific lifetime mortgage.
An annual cost table compares two products to show which is less expensive each year.
The rebroke tool helps users explain options for individual clients. Fees and early repayment charges are factored in to show which mortgage will be cheaper and the annual cost savings.
It will also produce a clear graph of the existing mortgage compared to the new lifetime mortgage with the option to include property value inflation.
Stuart Wilson, chief executive at Air Group (pictured), said: “While each adviser has their own approach to explaining how equity release works and the various features of these products based on regulation, concerns have been raised about whether customers truly understand issues such as the cost of these products over a lifetime.
“To further support our members, we have launched new borrowing forecast and rebroke tools to aid in the advice process.
“This will add another string to our members’ bows when they are working to support their customers with user-friendly graphs, tables and illustrations.
“These can be included within the suitability report and for compliance purposes will provide further evidence of the in-depth nature of the advice given and time taken to explain these important points.
“With the market growing rapidly and more customers than ever considering what role housing equity can play in their later life finances, AIR remains committed to helping advisers support more customers with a wider range of different tools, systems and training.”
