Mortgage and protection network HL Partnership (HLP) believes appointed representatives (ARs) should be calling more support for later life lending or run the risk of being left behind.
The growth in later life lending products, including the introduction of Retirement Interest Only (RIO) mortgages, alongside the innovation being shown in the equity release market, is in danger of leaving many brokers poorly prepared to meet the demand for advice, the Worthing based network said.
Chris Tanner, HLP’s chief executive, said customer interest in the sector continues to grow and he and his team have been inundated with calls from unhappy mortgage ARs, who are not, as yet, receiving any or very little guidance as to how they can successfully offer a service to their clients.
He said: “The number of calls we are getting from ARs from across the market has grown rapidly since the beginning of the year. Much as we are keen to recruit good individuals and firms, I believe that networks need to up their game in this area.
“Appointed representatives should be receiving training, policy guidance and access to tools from their network principal. If they are not getting what they need, then they should be seriously questioning the support they are getting. Networks and mortgage clubs, in turn, should be stepping up the education opportunities with workshops and events.
“At HLP, we have been working hard to ensure that our firms are fully conversant and comfortable with the latest developments in the market. We have already given our ARs the OK to advise on RIO mortgages and we have specialists in the group who can provide advice on cases where equity release is the most appropriate solution.
“Every network should be working with the Equity Release Council to develop its standards and then put policies in place that are fit for the modern later life lending market. In my opinion, if they do not, then they are going to find that they and their advisers will miss out on what is shaping up to be one of the lending sector’s major growth areas.
“The lending market as a whole is evolving, but the demand for lending solutions for those approaching or have reached retirement is off the scale.”