Brokers snubbing lifetime deals, says AMI
The census reported only 1 per cent of intermediaries expressed an intention to expand into the lifetime mortgage market over the next 12 months.
Ben Stafford, head of policy at AMI, said: “The statistic is not all that surprising. Advising in this sector is not to be taken lightly; intermediaries need to make significant changes in their business practices and it’s definitely not a market that can simply be dabbled in. But if advisers are fully prepared and have put in the necessary work to get through the threshold, it is a strong, robust and large sector.”
Acknowledging opportunities for their businesses over the next year, 26 per cent of intermediaries surveyed reported they would consider the introduction of fee charging for their service as a major opportunity with 25 per cent identifying expansion into commercial mortgages as another. 19 per cent saw expanding their protection offering as an opportunity with 14 per cent saying the same for personal loans.
Research from the Prudential reported customer confidence to be high in the lifetime market – nearly half (44 per cent) of homeowners over 55 would consider a lifetime mortgage and 31 per cent of people are more likely to consider one now the sector is regulated.
Vanessa Chance, marketing officer at the Institute of Financial Services, said: “Expanding into lifetime mortgages can be a lucrative portfolio extension for most brokers but appropriate training and qualification is essential. Since launching the Certificate in Lifetime Mortgages (CeLM) at the beginning of the year we have had an overwhelming response to the qualification, with 1,500 advisers already registered for the course.”