Equity Release A Broker’s View.
Andrea Rozario
Introduction
• A brief history…..
• Leaping into the unknown….
In Hindsight!
• Check out your competition.
• Look at your existing client bank
• Don’t underestimate the time needed for each client and the process
• Talk with other local IFA’s, Brokers etc.
Experiences I’d Rather Forget!
• Lack of communication between spouses!
• Clients “forgetting” to disclose relevant facts.
• Solicitors “opinions”. • Warring siblings. • Whose best interest?
The Nice Bits…..
• Very satisfied clients.
• Referrals.
• Lead on to other business.
• Support.
Benefits v’s Risk
Benefits• Job satisfaction• Not much competition• Can be financially
rewarding• Evolving market• Helpful lenders
Risks• Patience/long lead in
time• Compliance/FSA• Small market• Perceptions/media
attention• Grey areas
Top Tips for Brokers…
• Take one of the exams.
• Ensure you have the correct permissions from the FSA along with the relevant qualifications.
• Study the equity release guidelines from AMI/AIFA, CML etc.
Top Tips for Brokers…
• Subscribe to a State benefits software package such as fintal from Ferret Information Systems
• Check out MCOB chapters 8 and 9.
• Research on the internet.
• Use the information providers have spent the time gathering.
Top Tips for Brokers…
• Make sure you have factored in all your costs and time taken to arrive at a profitable fee structure.
• Keep abreast of developments within the industry.
Top Tips for Brokers.
• Look at local demographics.• Consider your existing client bank.• Build relationships with other brokers and
solicitors.• Use whatever resources you can for the client ie:
FSA fact sheet “Raising Money From Your Home”
How to Steer Clear of Mis-selling
• Consider and record client’s attitude to all other options.
• Discuss future possibilities such as re-marriage, moving, care in the home etc.
• Check client fully understands what they are getting into.
How to Steer Clear Of Mis-selling
• Adhere to the guidelines.
• Record everything.
• Check for State Benefits/grants/tax.
• Clear explanation of risks vs benefits and record client’s attitude to house price inflation.
How to steer clear of miss-selling.
• Explain what would happen in the event of a longer than expected life span.
• Take into consideration client’s health.
• Get the family involved – if appropriate.
• Research - make sure you have recommended best product to fit client’s requirements.
The Future of Equity Release.
• Increasing older population/baby boomers.• Government interest?• Strong market indicators but customers wary.• Evolving industry, qualifications, checklists
regulation etc.• What choice do many clients have?
Make a Decision..
If it’s not for you, don’t turn away the
business. Pass it on to a specialist..
Thank You