Specialist training is required because advising a lifetime mortgage solution is usually a far more time-consuming process than advising on a regular mortgage. The client would usually be classed as ‘vulnerable’ due to their age, so to recommend a lifetime mortgage a great deal of fact finding is required. The decision to apply for a lifetime mortgage is often a ‘family decision’ and the borrower’s children or family members may often be involved in the advice process so that all potential solutions can be considered. The borrower should also take independent legal advice before proceeding with an equity release mortgage.
Demand for later-life lending is increasing, whether it be for a conventional mortgage into retirement or equity release, and the offerings are becoming more competitive. An equity release mortgage is a big decision for anyone, and even though it is not a cheap solution, it can still be the right one for certain clients.
Adrian Anderson is a director of Anderson Harris
Key points
A number of larger banks and building societies are increasing the age by which a mortgage has to be paid off.
Equity release may be an option for those who can not get a standard residential deal because they are asset rich, cash/income poor.
One advantage of equity release is that set-up costs are relatively low.
