more 2 life: FCA changes will galvanise equity release market
more 2 life has welcomed a move by the Financial Conduct Authority (FCA) to relax rules surrounding lifetime lending.
As announced last week the FCA is proposing to scrap the need for an affordability requirement where the customer can convert the product to a roll-up.
Stuart Wilson, channel marketing director, more 2 life, said: “This announcement from the FCA is great news for lenders, advisers and consumers alike.
“As with everything in life, lending is not a one size fits all solution, so it’s important to ensure we are continually bringing new products to market to cater for the growing needs of consumers.
“In particular, we are pleased to hear about the proposed changes to KFI projections as this will help facilitate a more personalised picture, tailored to the individual circumstances of every client – something we have championed with our medically-underwritten Tailored Choice plan."
more 2 life said this is a golden opportunity for key stakeholders in this market, including the Equity Release Council (ERC), FCA and the Council of Mortgage Lenders (CML), to galvanise a concerted effort to grow the lifetime market.
Wilson added: “The ERC, FCA and CML, together with lenders, specialist advisers and other stakeholders, must now unite under a common banner to support and encourage product innovation and to put advice at the heart of this sector.
“This is no longer a niche market, it has matured into a specialist financial planning area and we would welcome advisers, trade bodies and councils coming together to ensure lifetime lending is fully integrated into broader retirement planning strategies.
“This is a phenomenal opportunity for all of us to help stimulate innovation and choice that will benefit the end consumer. The FCA has taken the first steps, but lenders and funders now need to step up their game and deliver. We encourage more firms to enter the market, which in return will increase competition and widen the choice available to consumers.”
