FSE 2013: Qualifications for hybrid interest only

Speaking at the Financial Services Expo, Linda Woodall, director of mortgages and consumer lender, said a number of new products have being designed by equity release mortgage providers to address the issue and are which now being referred to as hybrid lifetime mortgages.

Linda Woodall, director of mortgages and consumer lending, said: "Some have expressed the view that firms should be allowed to sell these products without a specific lifetime mortgage qualification.

"It is my view that given the complex nature of equity release products, the increased vulnerability of the borrower and the tax and benefits implications, any mortgage which meets the lifetime definition can only be sold with advisers with the appropriate qualifications."

But Woodall said not all mortgages which go beyond the retirement age of the borrower meet the regulatory lifetime definition.

She added: "Whether additional qualifications apply or not depends on the regulatory status of the product."