The Equity Release Council has launched a new online guide for advisers to help aspiring new entrants and recent arrivals to the market.
The detailed guidance framework has been created and sponsored by member firm Pure Retirement, in partnership with the council.
It will allow advisers to access generic information on the background to the market, the available propositions and the qualification routes required in order to advise on equity release products.
The launch of the guide follows a period of sustained growth for the market, with the start of 2016 witnessing a record first quarter for the sector.
At £393.9m lent, it was the highest first quarter value recorded and a 21 per cent increase on the same period a year before.
This year also marks the 25th anniversary of the Equity Release Council and its Safe Home Income Plans (Ship) standards, which set out best practice for products and advice across the sector.
The guide is available to download on the ERC’s website and an additional toolkit for advisers is also available exclusively to members, providing a collection of supporting materials, including example suitability reports, templates and forms.
Nigel Waterson, chairman of the Equity Release Council, said he hoped the initiative would give budding advisers the confidence to build up their knowledge and understanding of equity release in order to eventually gain qualifications and progress to giving advice.
“This in turn will benefit consumers as it will provide more people with access to professional financial advice when they are looking to consider how to access their housing equity,” he added.
Research published this week by Legal & General from surveys conducted at its April events showed that 74 per cent of mortgage brokers either currently recommend or would recommend later life lending or equity release products in the coming year.
Meanwhile, national broker Responsible Equity Release revealed enquiries about equity release products have risen by 44 per cent on pre-EU referendum levels, as retirees have been hit hard by market volatility.
Paul Carter, chief executive of Pure Retirement, said market growth can only be supported by broadening the adviser base.
“Traditionally there has been a reticence for generalist IFAs and mortgage brokers to engage in our market, yet my experience has shown that once you help advisers understand how to work within our market and the benefit it offers their clients they are only too willing to engage,” he commented.
Rob Muscutt, an IFA at Otter Financial Services, said: “Being relatively new to the equity release market, I have found the adviser guide a great reference tool.
“We have amended some of our documents to reflect the content of the guide and this has given us more confidence in promoting equity release products to our clients.”
peter.walker@ft.com
