Intermediaries may have to pass exams specifically on lifetime mortgages, if the Financial Services Skills Council's proposals come into effect.
Apart from being tested to the equivalent of Approved Examination Module One (ApEx 1): UK financial Services regulation and ethics, and ApEX5: Mortgage Advice, the Skills Council also suggests mortgage intemediaries pass muster on lifetime mortgage advice, or ApEx6.
In order to pass ApEx6, candidates will be expected to know what a lifetime mortgage is, the principles of equity release, lifetime mortage suitability as well as risks associated with such financial products.
Brokers must also show knowledge of the general house-buying process, and how mortgage borrowers differ if they want to pass the ApEx5 paper. They will need to demonstrate knowledge of both their own role and the role of advice.
Knowledge of legislation affecting mortgages, and the ability to anlyse different types of mortgage repayment options and mortgage products will also be required.
That said, the exact number of exams mortgage brokers must pass is not set in stone, as it will be up to the relevant awarding bodies to determine how candidates meet the required qualification standard.
"Awarding bodies are free to determine whether this is best done through a single test or a series of linked tests," the FSSC says.IFAonline
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