New to lifetime mortgages

With a growing demand for equity release, lifetime mortgages remain a useful tool in your kit when finding practical solutions for clients over the age of 60. Whether you're ready to advise on lifetime mortgages directly, or wish to refer while retaining complete ownership of your client relationship, we can help.

From practical information, tools and guidance, to dedicated support from your account manager, we can help you ensure that you're in a position to understand the nuances of lifetime mortgages when advising your clients.

As with many financial decisions, lifetime mortgages require careful consideration, and subsequently clients should be handled with care and sensitivity. If approached in the right way, it can be a particularly rewarding area in which to advise clients. There are many opportunities and possibilities for professional, qualified financial intermediaries in the lifetime mortgage space as there remains a significant under-supply of advice in the market.

Step 1 – identifying possible lifetime mortgage clients

A broad ranging fact-find covering a range of areas will give significant insights into a client's financial needs which may, as a result, suggest that lifetime mortgages could be a full or partial solution, including:

  • Future plans
  • Ongoing commitments
  • General state of health
  • Possibilities of future house moves
  • Ongoing income requirements
  • Preferences for their estate
  • The effect that a lifetime mortgage will have on their will/ estate/ inheritance tax situation
  • Any impact of needing to enter long-term care in the future
  • Eligibility for state benefits and the impact on them caused by taking a lifetime mortgage
  • Alternatives to lifetime mortgages (i.e. trading down, local authority grants, use of savings, re-mortgaging etc.).

Step 2 – deciding to advise or refer

If you're qualified to advise on lifetime mortgages, your decision may be straightforward. But if it's a client that perhaps has requirements below your business threshold, or if you're not active in the lifetime mortgage market and still wish to help a client in this area, you can still continue to assist them.

Just Retirement Solutions Limited offer the Equity Release Referral Service. It's ideal for financial intermediaries who are not active in the equity release market but wish to benefit from doing what's right for their client.

Whether you have chosen not to advise on equity release or are not qualified to do so, JRS has developed this service to enable you to take advantage of this growing market. Find out more 

Step 3 – making a recommendation

As you would with any recommendation, you'll need to conduct a full fact find for your client, to establish the best retirement solution for their needs.

The Equity Release Council has a useful checklist which covers the top 13 points to consider when advising on equity release 

Step 4 - other considerations

It should be strongly recommended that the client's family are involved in any decision making and are invited to attend any part of the advice process. Given the lifetime commitment to the product, both the client and their family must be given ample time to make a decision.

As it is an Equity Release Council (formerly SHIP) requirement, you should always recommend your clients to appoint an independent solicitor of their own choice to assist in the legal processes should they proceed to application.