Are brokers keen to broaden their expertise by advising in the later life market? And if they do what training and mentoring is on hand to facilitate this?
Mortgage Strategy spoke to Will Hale chief executive at Key about the Air Academy. He explains how the later life lending market is transforming rapidly and the options open to adviser firms.
Hale says he is certainly seeing more mortgage advisers looking at later life either to participate themselves or work closely with specialist firms in that sector.
The reason for increased focus is partly demographic (a large percentage of the population entering or in retirement) but also in relation to consumer duty requirements.
“Advisers should be taking an holistic view for their clients and ensuring they are being pointed in the right direction and this might include later life lending.”
Hale adds: “We have seen steady pick up in Academy numbers in some instances those new to this sector but also those already familiar with the market but looking to stay up to speed. More and more broker firms will allocate later life to one person in the business as referring externally is often a challenge and can create a barrier.”
A revaluation of the later life market and a broader acceptance of what it offers has helped to change general perceptions. “Customer needs have changed. Equity release was seen as the product of last resort. But now things are different. Mortgages in retirement are now a common occurrence, and people will increasingly be taking their first mortgage in their 30s and then likely to take this mortgage debt into retirement. It makes sense to offer more options and the products available now are very different to what available 15 years ago,” Hale insists.
Customer misconceptions regarding equity release have long been a hurdle to deal with and the challenge has been how to build awareness. Hale suggests mortgage networks increasingly taking later life business seriously, with the likes of MAB developing its’ own later-life proposition, has helped push the dial forward visibly.
The Academy has been offering professional development for over 10 years now – how has it evolved over this time?
“The training has become broader as the market has become much more sophisticated. The mode of delivery has taken advantage of the flexibility that remote training offers and brokers can track and log CPD electronically.”
Hale goes on to explain that while remote training is welcomed by Academy members, face-to-face and network opportunities are frequently available across the UK to provide support and further learning.
The Air Academy’s digital learning platform not only provides London Institute of Banking and Finance (LIBF) accredited courses designed to strengthen skills but also ready-to-use marketing material to help advisers engage with customers as well as generate referrals.
Hale says that brokers understand that to advise in this market they need a specific ER qualification under their belt and for some this might be seen as a barrier. However, as brokers see more and more people in need of equity release solutions, the onus to become qualified has intensified.
He concludes:“We work in close association with the Equity Release Council (ERC) and with LIBF, it is important for us to have external credibility, we don’t want the Academy to work in a vacuum.”
