BTS launches support for study of financial planning process AF5 Advances in technology, combined with innovative new products, will make things easier for both advisors and clients from initial appointment to application and completion. Ultimately, this will benefit the customer, who will receive a simplified and seamless process, as well as the choice of a variety of products with different characteristics to meet their needs. According to Key's latest Market Monitor, almost half of customers use the capital release to pay off some type of debt, along with other reasons: 29% pay credit cards or loans and 20% to pay off outstanding mortgages. While people naturally need to think before changing one form of loan to the other, good Equity Release advisors will help them consider all their options and, with voluntary partial payment options now available in many plans, customers can continue to repay their debt if they want, but without the concern of non-payment or recovery.
If used correctly, equity release can provide a vital lifeline for people who are facing the loss of their home due to an interest-only outstanding mortgage or who survive on very little while trying, but often can't pay off growing debit card debts. I would also say that the stock issuance market is changing rapidly and that products are more flexible than ever, so paraplanners need to find time to understand what features are available and how they could help their customers. Modern capital release products, including the opportunity to make interest and principal payments under certain circumstances, could certainly be compared to some of the interest-only retirement mortgages on the market. Recently, more2life has launched its service promise, whereby we will compensate customers 500 pounds sterling if it takes more than 14 business days to issue a loan offer from the date of application through our fastpath portal.
The development of industry-leading cutting-edge technology is high on the agenda when it comes to advisory support. When only execution and those not advised apply and do not apply, call the FCA to support the “tools” of subsequent lending. A capital release mortgage is, in a nutshell, a loan plus interest that is returned to the lender when the owner dies or enters permanent care.
