There were some positive findings of the recent review, for example consumers in the lifetime mortgage market generally gather lots of information about equity release and lifetime mortgages before going to a broker or lender. They also take time over their decision, and all consumers involved in the review were highly comfortable and confident about their purchase decision.
However the review also highlighted the need for improvement. Since their introduction in 2004, both the KFI (Key Fact Illustration) document and IDD (Initial Disclosure Document), although considered important are not carrying out the desired reaction from consumers. The KFI is not being used for shopping around nor is the IDD prompting consumers to think about the level of service they should be getting from different firms.
Dean Mirfin, business development director at Key Retirement Solutions said: "It is great to see the FSA carrying out investigations into the consumer's experience, and we fully support their efforts to ensure best practice. However the review does highlight the fact that consumers need greater education to help with the decision making process. Better education however should still be supported with access to the greatest product range."
