Key Group has said CeMAP qualifications, which are for mainstream mortgage advice, should be merged with CeRER, covering equity release advice, which would be a “huge step forward [in] addressing… those issues and breaking down silos”.
The statement follows the Financial Conduct Authority’s (FCA’s) Future of the Mortgage Market Discussion Paper – with the consultation closing on 19 September – which outlined the importance of older borrowers being made fully aware of the full range of borrowing options.
Key Group said mortgage brokers must be better prepared to support customers’ later life lending needs and a single standard mortgage qualification would ensure they can see their full range of options.
The advice firm said this would not mean that all advisers would necessarily provide advice on all deals and some advisers or firms might want to work with a referral partner.
However, advisers should be “equipped with the basic knowledge required to deliver good outcomes” for this cohort of customers.
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Key Group has also called for mandatory continuous professional development to include an element of content specific to later life lending, which could cover increased product complexity, retirement interest-only (RIO), term interest-only deals and lifetime mortgages.
Charlotte Allen, chief risk and compliance officer at Key Group, said: “Introducing a single qualification to advise on all types of mortgages, including later life lending, would ensure that those over 55 are offered the right options according to their circumstances and be a step towards removing the lottery of outcomes being determined by what type of adviser a customer happens to engage at outset.
“That is fully in line with Consumer Duty obligations and should be considered seriously as part of the FCA’s mortgage market discussion.”
She continued: “All advisers must advise and not simply be order takers. Often, customers come to advisers not having the information they need to be making informed decisions. Whether you are an equity release specialist or a mainstream adviser, not defaulting to one product type, not passively facilitating a remortgage or product transfer, considering all options and being prepared to challenge customers on their preconceptions should be part and parcel of the role.
“The current qualifications regime does not reflect how the product landscape and customer needs have evolved in the later life lending market. Customers are coming onto the property ladder later, mortgages often have longer terms and taking mortgage debt into later life is becoming the norm. All advisers should be able to talk to older customers about all the options available to them, even if some products are outside of the scope of the advice they wish to offer, and introducing a single qualification alongside industrialising referral mechanisms would be a positive step in breaking down the current silos and improving outcomes.”
