A survey of the Equity Release Council (ERC) members found that 73 per cent felt more mortgage advisers needed to understand equity release and the right time to recommend it, when asked what actions would improve access to the right later life advice.
Some 70 per cent said ensuring equity release advisers have a “broad understanding” of related products and markets, while 64 per cent said wealth managers and independent financial advisers needed to better understand equity release.
More than half, 55 per cent, said building more referral relationships would help later life clients while 44 per cent said adviser training and continued professional development (CPD) would be beneficial.
Reducing siloes
The survey findings back up an independent report commissioned by the ERC earlier this year, which found that a coordinated approach was needed for older homeowners.
At the time, the ERC called for measures to address the regulatory divide between different advice sectors and said various CPD requirements could create “blind spots”.
The trade association has since taken steps to adopt the recommendations made in the ‘Later Life Lending: Great Expectations’, such as making its adviser guide to equity release and its competency framework available to non-members.
The right pathway for borrowers
Kelly Melville-Kelly, head of risk, policy and compliance at the ERC, said: “Equity release is a great product but it’s not for everyone. That’s why the council and its members work hard to make sure unsuitable candidates get put on the right referral pathway for the right product and advice. It’s a regulatory requirement and something that’s embedded in our standards.
“Unfortunately, that doesn’t always cut both ways. We believe there are many people who could benefit from equity release presenting to financial services professionals who possibly cannot advise on it or have outdated views of it. Either way it means they might overlook their clients’ property wealth in the advice process.
“The need for a more joined-up approach to advice does not start and finish with later life lending. All financial services professionals have a part to play to make sure people get the right information and support.”
She added: “The arrival of Consumer Duty and the thematic review of retirement income advice are two important opportunities to put the customer at the heart of later life financial planning.
“It is vital we find new ways to work across product boundaries to deliver a more cohesive experience and ensure customers leave no stone unturned when it comes to improving their retirements.”
Craig Brown, CEO of Legal and General Home Finance, said: “It’s evident that property wealth is playing an increasingly significant role in later life planning.
“To reflect these changes, and meet evolving customer needs, lenders and advisers both have a responsibility to ensure customers are able to understand and access a complete range of products suitable to their needs or, at the very least, a solid and diverse network of referral contacts, to broaden the range of products they can advise on.”
