Key Partnerships, the equity release referral service arm at Key Group, has launched new services comparing the growing range of solutions for customers.
Its Navigator tool includes a basic affordability assessment alongside a consideration of customer preferences and circumstances to identify potential product options for borrowers. It also compares the cost of borrowing across lifetime mortgages with repayment and no repayment options as well as C&I mortgages and retirement interest-only (RIO) mortgages.
The tool can be used by mainstream mortgage advisers to help them triage customers and identify those who may be more suitable for referral into a specialist later life lending adviser. It provides the evidence and audit trail around product eligibility and potential cost of borrowing comparison to support the referral process.
Key Partnerships says that when weighing up options, cost of borrowing is just one factor that needs to be considered. Reviewing the levels of protection afforded by the different product types alongside customer circumstances, preferences and capacity for risk will also enable advisers find the right route for their clients.
The new tool, built by Air, has been created to help mainstream mortgage advisers ensure they are having comprehensive conversations with all customers over the age of 50 considering looking to borrow in or into retirement. Irrespective of the scope of their advice proposition, advisers need to consider all the product and non-product options which could deliver the most suitable outcome for their customer and have trusted referral partners in place where specialist advice is required, Key Partnerships says.
The output from the tool is an effective way of advisers demonstrating that they have met their obligations in this area under Consumer Duty.
Chris Bibby, managing director at Key, said: “The later life lending market is at the tipping point of substantial change following the combination of Consumer Duty implementation and the rapid evolution of new types of lifetime mortgages. It is more important than ever that mainstream mortgage brokers are aware of the full range of lending options available to over 50s who are looking to borrow into retirement and are ready to have those conversations with customers or refer them to someone who can.
“Mortgage brokers advising over-50s borrowers need to offer customers the full range of options and establish preferences, whether it is a lifetime mortgages offering repayment options, RIOs or standard residential mortgages. Being able to evidence this broad field of vision irrespective of the scope of your advice proposition is an essential part of Consumer Duty.
“For those that want to advise on the full range of later life mortgage products there is plenty of support from lenders or the likes of Air to help with qualifications, product training, sourcing and other tools. However, for others the support of a trusted referral partner can be the best route to achieve good outcomes for all customers in a commercially optimal way. Whichever model advisers choose the later life market is one that cannot be ignored.”