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Equity Release A Broker’s View. Andrea Rozario

Equity Release A Broker’s View

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Equity Release A Broker’s View. Andrea Rozario. Introduction. A brief history….. Leaping into the unknown…. In Hindsight!. Check out your competition. Look at your existing client bank Don’t underestimate the time needed for each client and the process - PowerPoint PPT Presentation

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Page 1: Equity Release  A Broker’s View

Equity Release A Broker’s View.

Andrea Rozario

Page 2: Equity Release  A Broker’s View

Introduction

• A brief history…..

• Leaping into the unknown….

Page 3: Equity Release  A Broker’s View

In Hindsight!

• Check out your competition.

• Look at your existing client bank

• Don’t underestimate the time needed for each client and the process

• Talk with other local IFA’s, Brokers etc.

Page 4: Equity Release  A Broker’s View

Experiences I’d Rather Forget!

• Lack of communication between spouses!

• Clients “forgetting” to disclose relevant facts.

• Solicitors “opinions”. • Warring siblings. • Whose best interest?

Page 5: Equity Release  A Broker’s View

The Nice Bits…..

• Very satisfied clients.

• Referrals.

• Lead on to other business.

• Support.

Page 6: Equity Release  A Broker’s View

Benefits v’s Risk

Benefits• Job satisfaction• Not much competition• Can be financially

rewarding• Evolving market• Helpful lenders

Risks• Patience/long lead in

time• Compliance/FSA• Small market• Perceptions/media

attention• Grey areas

Page 7: Equity Release  A Broker’s View

Top Tips for Brokers…

• Take one of the exams.

• Ensure you have the correct permissions from the FSA along with the relevant qualifications.

• Study the equity release guidelines from AMI/AIFA, CML etc.

Page 8: Equity Release  A Broker’s View

Top Tips for Brokers…

• Subscribe to a State benefits software package such as fintal from Ferret Information Systems

• Check out MCOB chapters 8 and 9.

• Research on the internet.

• Use the information providers have spent the time gathering.

Page 9: Equity Release  A Broker’s View

Top Tips for Brokers…

• Make sure you have factored in all your costs and time taken to arrive at a profitable fee structure.

• Keep abreast of developments within the industry.

Page 10: Equity Release  A Broker’s View

Top Tips for Brokers.

• Look at local demographics.• Consider your existing client bank.• Build relationships with other brokers and

solicitors.• Use whatever resources you can for the client ie:

FSA fact sheet “Raising Money From Your Home”

Page 11: Equity Release  A Broker’s View

How to Steer Clear of Mis-selling

• Consider and record client’s attitude to all other options.

• Discuss future possibilities such as re-marriage, moving, care in the home etc.

• Check client fully understands what they are getting into.

Page 12: Equity Release  A Broker’s View

How to Steer Clear Of Mis-selling

• Adhere to the guidelines.

• Record everything.

• Check for State Benefits/grants/tax.

• Clear explanation of risks vs benefits and record client’s attitude to house price inflation.

Page 13: Equity Release  A Broker’s View

How to steer clear of miss-selling.

• Explain what would happen in the event of a longer than expected life span.

• Take into consideration client’s health.

• Get the family involved – if appropriate.

• Research - make sure you have recommended best product to fit client’s requirements.

Page 14: Equity Release  A Broker’s View

The Future of Equity Release.

• Increasing older population/baby boomers.• Government interest?• Strong market indicators but customers wary.• Evolving industry, qualifications, checklists

regulation etc.• What choice do many clients have?

Page 15: Equity Release  A Broker’s View

Make a Decision..

If it’s not for you, don’t turn away the

business. Pass it on to a specialist..

Page 16: Equity Release  A Broker’s View

Thank You