The Financial Conduct Authority (FCA) recently published its review into later life mortgages, which raised serious issues around the advice provided by a number of the more prominent firms in the equity release marketplace and also highlighted failings around their advertising methods.

Whilst it is always disappointing to hear findings of poor practice, SPF welcomes the FCA’s interest in the wider marketplace and is in full agreement with their position, highlighting two areas in particular – the importance of providing personalised advice and ensuring all alternatives are fully considered.

Whilst SPF’s Later Life Lending team specialises in lifetime mortgages and retirement interest only mortgages, our position within a multi-disciplined brokerage means that we are able to consider mortgages from mainstream banks and building societies, as well as other specialist funders alongside the aforementioned later life products (last year SPF placed mortgages with 145 different lenders). This ensures that the most suitable solution is offered to each of our clients.

In addition to considering all other potential mortgage options, SPF’s advisers also consider all non-mortgage alternatives when assessing the suitability of a later life mortgage – this is a requirement of the Equity Release Council, of whom SPF are a member firm, and forms an important element of the advice process. We firmly believe that all good advice is built on a foundation of comprehensive fact-finding and our advisers will always be in a position to take as long as is necessary to understand our clients’ circumstances and requirements, usually through a combination of remote and in-person meetings, prior to making any recommendation. All recommendations will be formally presented to clients and will be re-confirmed in writing via a bespoke ‘Suitability Letter’ with dedicated administrative support provided to clients from application through to completion.

All enquiries to laterlifelending@spf.co.uk or call us on 020 7330 8555.