Dean Mirfin, business development manager at Key Retirement Solutions, explained that even though the recently launched platform from the Exchange does state that not all providers are on the system, he fears brokers may still be using the system as their only research tool.
Mirfin said: “We will continue to use an in-house sourcing system until there’s a system that covers the whole of the market.
“Equity release and lifetime mortgages have had bad press; it is important that brokers are aware that while the platform is a very useful tool it is only as good as the information that goes into it.”
Nigel Pamment, senior mortgage consultant at Inspirational Financial Management Ltd, is also concerned, he said: “This is a sensitive area to advise in and everything has to be documented and researched thoroughly in order to obtain proof that the best advice was given to the client.”
On a recent lifetime mortgage application Pamment compared a product, over a fifteen-year period, with the best plan available through The Exchange’s equity release trading platform.
The difference showed a debt of over £9,500 less with a plan not available on The Exchange.
Charlie Musson, PR manager at The Exchange said: “We have around 80 per cent of lenders on the platform and there is a disclaimer warning brokers that it doesn’t cover the whole of market.
“This broker has used our system exactly how we recommend it to be used, brokers must look for all the best options available to their clients”
Pamment added: “It worries me that brokers aren’t checking thoroughly enough, the last thing we need is to leave ourselves open to another mis-selling scandal.”
