Lifetime mortages - finding a good broker

Ally1205

I'm interested in equity release schemes an am seriously thinking of applying for a lifetime mortage. Can anyone suggest how I find and choose suitable broker to help me find a good deal?

Thanks..

holly_hobby

You need to source an adviser that holds the appropriate ER1 qualification as a minimum (and really want at least a Lifetime Mortgage/Equity Release Diploma qualifed adviser, whom is also able to fully evaluate/appreciate and make provision for potential tax issues and any loss of means tested benefits, as a result of any equity release procedure).

Any financial provider should also be a member of SHIP with a no negative equity guarantee.

Furthermore, to ensure the providence of the advice given, you should ideally source an adviser that has achieved Later Life Adviser Accreditation, whom may be sourced as a member of the Society Of Later Life Advisers (SOLLA).

LLAA is a voluntary Later Life accrediation scheme, gained by the personal assessment and examination of the adviser (of which I am an appointed auditor/examiner). A successful assesment permitting the indviduals membership to SOLLA, further demonstrating their competence in the area, as part of a detailed and independent accrediation procedure.

As I am prevented from individually recommending an adviser, I would suggest a look at the attached link http://www.societyoflaterlifeadvisers.co.uk/ , which will take you straight through to SOLLA dedicated website, and provide guidance on both the subject, and assistance in sourcing a local and suitably accreditated Later Life Adviser.

Hope this helps

Holly

Ally1205

Thank you, Holly - that's the kind of guidance I was looking for. My nearest SOLLA member seems to be over 30 miles away, according to the SOLLA site. I will email him.

dunstonh

try https://www.unbiased.co.uk and use that filter for equity release. You may get a closer list. I just did a dummy run on my postcode (which is countryside) and found 4 listings within 3 miles (2 paid entries and 2 that were not).

I did the same search on the solla site and the nearest was 19 miles away

holly_hobby

Only LLAA/SOLLA accredited advisers have been voluntarily and independently assessed, on their advanced competence in the area (apart from obviously having sucessfully sat the Cert in Eq release).

Originally the FSSC established this competency measure, as an aid to increase consumer protection and confidence in the area, after the previous inappropriate equity release schemes and inadequacy of advisers knowledge - which all but runied the market and saw many providers withdraw (later to re-appear with revised products/criteria).

Those of us whom have been in FS for a number of yrs, will all recall the very public fallout, demonstrated from the awful situations some individuals found themselves in, and highlghted by the press and various consumer watchdog programmes. (rightly so in some cases, but not all).

Whilst it is not presently mandatory for a later life adviser, even with LLAA, to become a member of SOLLA (neither if one is not a member, does it mean that their advice is substandard in any way). It is obviously preferrable to the consumer and their confidence, in that the adviser has been verified has having demonstrated that they have the suitable capabilities, knowledge and proven skills set in the area. As the adviser "getting it wrong", or not appreciating the further issues outside of the immediate releasement of capital, especially at this stage of the individuals life, can be catasrophic in terms of both personal and financial measures.

I would rather be v safe, than extremely sorry and hope that all posts give you food for thought ...

Don't rush this, obtain as much guidance and reading material as you can before making any final decision (as a change of heart and subsequent exit fees from any lifetime mortgage arrangment can be costly)

Do hope this helps and I wish you well ....

Holly

PS .. you may find the attached link regarding SHIP and their role in the area, of some use to your considerations ... http://www.ship-ltd.org/

Wh05apk

I am equity release qualified, but have never heard of Solla, upon checking it would appear to be another "paid for club" i.e. a business! I do not see any benefit of joining this type of organisation, I also do not believe they do any more to promote good service/correct advice than any other network etc.

magpiecottage

holly_hobby wrote: »

You need to source an adviser that holds the appropriate ER1 qualification as a minimum

To advise on Equity Release you MUST be qualified but ER1 is NOT the only way of doing it and, in fact, is not enough.

SHIP (Safe Home Income Plans) gives more information here.

handytips

I use a firm called sixtyplus for any enquiries i have in this genre, David and Peter are very good and very knowledgeable in this particular field

holly_hobby

Ok Magpie basics and long hand version ... current CII minimum quals for Cert In Equity Release are CF1 & CF6 (or CeMap credit) or RO1, in addition to ER1 (which is equivilent to HR1 for advisers holding CF1, CF6 and CF7 pre April 2007, and haven taken HR1 before April 2009). Or if you are going the IFS route and a CeMap qualified mortgage adviser, authorisation is currently achieved by the additional CeRER qualification.

In essence the individual is a basic qualified mortgage adviser, with the extra top ups to achieve the Cert In Equity Release. Apols if I shorthanded it a bit in my earlier post, which may have caused confusion on requirements.

Accordingly, and as stated in my earlier post, I do believe that any Later Life Advisers should ideally either hold the full FPC (& top ups to satisfy new min requirements), CeFA or the full Cert In Fin Planning (if a newer entrant to the industry), in addition to holding the equivilent Cert in Equity Release and also in Long Term Care - as I feel the 2 sit hand in hand in relation to Lifetime Mortgages and the issues raised.

Indeed, due to not only the long term care and loss of means tested benefit issues, raised by an equity release exercise, there are of course possible tax (if capital invested), IHT and Trust issues to be considered, and suitable provision made as applicable. Accordingly and ideally, the individual would be best placed to seek (if possible), a Diploma qualified adviser who holds the relevant certs as discussed, and also has the detailed skills and knowledge required to acknowledge the various complexities and recommend provision as required (without further referall of the Client, to additional practitioners whom are duly qualified in the required areas of advice).

But current minimum Cert In Eq Release Requirements are what they are. Which is why in such cases, the adviser having acheived Later Life Adviser Accreditation (LLAA) serves as a valuable guide to the consumer of both the advisers detailed knowledge (and their ability to apply the same), their proven proficiency in the matter (accrediation being achieved by various measures and the individual assessment and interview of the adviser), and the advisers obvious desire to distinguish themselves as such in the market place.

Magpie - SHIP link quoted not active, but already provided to the OP in my earlier post so she already has note of direct access to the site.

As stated earlier, due the complexities and sensitivity involved in this area, if possible I would always seek an accredited adviser, whose competency and application of knowledge has been duly assessed and validated as proficient.

Of course thats equally not to say that a non-accredited adviser does not have the same skills set or years of relevant experience, they just haven't elected to be externally assessed for accreditation (other than by sucessfully sitting the relevant examinations detailed above). Whereby an accredited adviser has requested, and been sucessful, in a post-qualification independent measure of their proficienty in their active role (which yes , the adviser does pay a fee for their assessment and accreditation. As amongst other things the independent Auditor reviewing the individual, obviously has to be paid for their own time involved in the assessment procedure which is detailed and time consuming).

Hope this helps

Holly

Ally1205

Magpiecottage,
Could you provide a corrected link to the specific info provided by the folks at SHIP? The link in your message above seems obsolete. I had a quick scan through the SHIP site but can't find anything about adviser qualifications. Thanks.

holly_hobby

Ally .. this will help determine the qualifications required, with firstly a link to the CII website (whom are an examining body for Financial Services Professionals and this subject) .....

http://www.cii.co.uk/financialservices/qualifications/certER.aspx

this link will take you to IFS website and CeRER qual requirements

http://institute.ifslearning.ac.uk/Qualifications/QualificationsinMortgageAdvice/CeRER.aspx#What does this qualification cover?

and this link will explain the Later Life Adviser Accreditation scheme, and its basis of introduction
http://www.societyoflaterlifeadvisers.co.uk/index.php?option=com_content&vie%20w=article&id=55&Itemid=139

Hope this all helps in your search and understanding ...

Best wishes

Holly