Retirement and equity release specialist Key is to launch a new holistic advice service for over-55s as part of an expansion of its advice services.
The company says a new ‘joined-up’ advice service will give customers more ability to explore alternatives to borrowing and other lending options via a single adviser.
Key Group says the move will mean an expansion of its later life lending advice service.
The holistic advice process begins with understanding a customer's circumstances, objectives, priorities, and future needs, the firm says.
Key Group’s advisers will first consider whether borrowing is appropriate at all, having explored alternatives such as using other assets or income, downsizing, changing plans and/or having facilitated access to specialist support on other areas of Financial Planning.
The firm says that only where later life borrowing is suitable are options considered including lifetime mortgages, Retirement Interest Only (RIOs) and residential mortgages.
Advisers in Key Group’s Key Equity Release, and its whole of market, The Equity Release Experts (TERE) businesses, will be able to provide advice and product recommendations encompassing all later life mortgage options without the need for referrals to other teams.
Downsizing and referrals to partners covering areas such as debt support, pensions advice, guidance on care funding options and issues with short leases will remain an important part of the proposition, Key says.
The firm has ramped up training for advisers ahead of the launch has included enhancements to the fact find approach as well as knowledge refreshers and training on different mortgage types alongside meetings with lenders and one-to-one training on sourcing systems.
Key is partnering with Mortgage Brain to assist with researching mortgage products not already covered by its own market-leading later life lending platform Air.
The launch builds on an ongoing focus on holistic advice at Key.
The enhanced holistic service will enables all Key's advisers to research and recommend a wider range of products directly. This ensures customers receive advice driven by their needs all in a single advice appointment, Key says.
According to the firm, the launch aligns with the growing regulatory focus on holistic advice highlighted within the FCA's Later Life Mortgages Study and supports Key's commitment to delivering good customer outcomes and fulfilling its obligations under the Consumer Duty.
Will Hale, CEO of Key Equity Release said: “For a number of years we have adopted a holistic approach across all our advice channels ensuring that, irrespective of the scope of our advice proposition, customers are made aware of all available options and are referred to specialist teams where appropriate.
“This further evolution to holistic advice within a single advice appointment is in our view now essential in the later life lending market. It improves the customer journey, strengthens our advice, and supports better outcomes.
“Product innovation and the broad range of profiles among over-55 customers looking to access their property wealth, or manage mortgage debt, in later life means that product-siloed advice is a major risk to delivering consistently good customer outcomes.
“Given the focus of the FCA on the safe growth of the later life lending market, this is a major opportunity to further enhance our advice service for customers and our introducer partners by making the journey smoother while empowering our advisers with the knowledge and tools to help more customers themselves rather than referring them."
Key says it has helped over 1m customers over the past 25 years.