Home reversion has been predicted to be a major sector of growth in 2008 and equity release brokers advising on only lifetime mortgages must take steps to enter into the market, it has been claimed, reports Mortgage Introducer (19/1/2008).
Dean Mirfin, business development director for Key Retirement Solutions, stated that 2008 would be the year that home reversion came into its own, but added that much of its growth, and that of equity release would be dependent on how the housing market performs over the coming year.
Mirfin said: “In a pessimistic climate, home reversion is the more popular option. Advisers need to be advising on both options, not just one. To restrict what you can offer a client doesn’t make any sense. We know there are a lot of brokers that have never sold a home reversion.”
He added that it made sense to take the home reversion exam, as equity release advisers were obliged by the regulator to discuss all options with a client anyway – even if they were not qualified to arrange a home reversion plan.
The regulator will require advisers to have a home reversion qualification by April 2009, yet advisers will most likely be forced into it a year early with Safe Home Income Plans’ requirement of the qualification beginning from April 2008.
No comments:
Post a Comment