Later life lending qualifications should be part of the standard qualifications to be able to advise on mortgages, Key Advice says. 

The equity release adviser’s comments are in response to the Financial Conduct Authority’s Future of the Mortgage Market Discussion Paper, which closes its consultation on 19 September. 

The paper stresses the need to ensure that older borrowers are being made aware of the full range of borrowing options.

Some of the questions highlighted in the FCA’s paper, which launched in June, include ‘How effective and holistic is advice on later life lending?’ and ‘How can our rules support borrowers to access more effective information or advice to support their needs?’.

Key Advice suggests merging CeMAP qualifications with CeRER, a qualification currently required to advise on equity release, would mark a “huge step” in addressing those issues and breaking down silos. 

The lender says that mortgage brokers must be better prepared to support customers’ later life lending needs and a single standard mortgage qualification would ensure they’re able to consider the full range of options available to borrowers aged 55 and over. 

While not all advisers would provide advice across all products, Key notes that all advisers should be equipped with the basic knowledge required to deliver good outcomes. 

Key also proposes that it should be mandatory for Continuous Professional Development (CPD) to include an element of content specific to later life lending so advisers can keep up to date with all options available to customers. 

Key Group chief risk and compliance officer Charlotte Allen says: “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.”

 “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 re-mortgage or product transfer, considering all options and being prepared to challenge customers on their preconceptions should be part and parcel of the role.”