View more on these topics

Equity release advisers ‘exam collecting’, not selling

Home-House-Monopoly-Money-Property-700x450.jpg

Very few advisers with equity release qualifications actually sell the products, new research suggests.

Equity release specialists Pure Retirement says 9,000 advisers in the UK are qualified to offer equity release, yet just 500 to 1,000 are advising on it every month.

Pure Retirement head of distribution Chris Flowers says this is because advisers like to ‘collect exams’.

Speaking at an event run by Mortgage Strategy sister title Money Marketing, Flowers said this is becase mortgage exams are not ‘tasking’ and so some advisers may take them simply to boost their credentials.

Asked why the number of advisers actively recommending equity release products is so small, Flowers said:

“There are a number of reasons, but the honest answer is that people just collect exams. You might not like it, but I think people get the idea that they can read on the weekend then go [and take the exam] on Monday.

“Being really honest, it’s not the most tasking of exams and I think advisers think: ‘if I can get a few more points then I’ll get my exam’. I think that’s happened for a fair few.

“People want to be able to take an exam just so they can talk about it, so I think there are a lot of clients that go to advisers that talk about it and say ‘I’ve got the qualification’ but then not actually transact the business.”

Just director of distribution compliance Roger Pangbourne said that in his experience, “advisers do not take exams just for the sake of it.”

Recommended

Equity-release-house-home-700.jpg

Percentage fees for equity release unfair, says network

The fees charged on equity release mortgages are under scrutiny again, after a leading mortgage network claimed that percentage fees went against Treating Customers Fairly guidelines. JLM Mortgage Services claimed that some equity release brokers were “profiteering” by charging percentage fees of between 2 and 4 per cent, and often pocketing a procurement fee on […]

House-Home-Property-Ladder-Mortgage-700x450.jpg

Average equity released topped £80,000 in September

The average equity released by homeowners topped £80,000 in September, according to Responsible Equity Release. The firm says homeowners are taking advantage of falling lifetime mortgage interest rates. Last month, UK homeowners released an average of £86,361 from their properties. Property owners also agreed an average additional borrowing facility of £43,385. That took the average […]

Newsletter

News and expert analysis straight to your inbox

Sign up