Some providers are considering new products that incorporate a mandatory payment period at the outset before converting into a lifetime mortgage after a predetermined time. These new products have the working titles of ‘mandatory payment’ or ‘hybrid’ products and the FCA has amended its rules so they can be considered equity release products from the outset.
The Council’s standards do not currently take these products into account but we have undertaken a detailed review so they can be covered.
In addition, the FCA’s review of later-life lending, in September 2023, gave rise to the need for other updates to our standards, which we have incorporated into this review.
This work has been carried out by a working group drawn from the membership and then reviewed by the Council’s adviser forum before being brought to the standards committee.
We now need to ask our members for their views on the proposed changes. These changes have been divided into two areas, product and advice. The proposed updates are shown in red below.
Respondents can remain anonymous but we invite you to provide your contact details if you are willing to be contacted about your views.
Our thanks go to all involved in this project and to our members for their continued support.
A wider review of our standards is planned for 2024.