The advice of equity release advisers is needed by homeowners so that they can choose the right equity release plan which will be able to meet their needs and requirements. In order for an equity release adviser to provide financial planning advice, he must have certain equity release qualifications . He must successfully complete certain examinations according to the requirement of SHIP. SHIP stands for Safe Home Income Plans which is the organization that safeguards the rights of homeowners who are opting for equity release as a way of obtaining an additional source of income.
If an equity release adviser does not meet the requirements of SHIP, he cannot offer advice to homeowners. The main exam that an equity release adviser is required to take and to pass in order to offer advice is the CeMAP (Certificate in Mortgage Advice and Practice) exam. In order to obtain the CeMap qualification, three multiple choice exams must be passed – CeMAP 1, CeMAP 2 and CeMAP 3.
CeMAP 1 is an introduction to financial services, products and regulations in the United Kingdom. It covers the different aspects of the financial services market in the United Kingdom and consists of two units. The first unit focuses on taxation, savings, pensions, and mortgages while the second unit focuses on the regulations of the financial services industry especially on the role of the Financial Services Authority.
CeMAP 2 focuses more on providing mortgage advice and covers mortgage applications, product, and repayment options while CeMAP 3 focuses on answering questions bases on case studies. In order to obtain specific knowledge of lifetime mortgages and home reversion plans, an equity release adviser will need to take the exams provided by the CII or the IFS educational bodies.
The CII or Chartered Insurance Institute provides qualifications for those working in the financial and insurance services industry. The IFS School of Finance is one of the leading education bodies providing qualification for the financial services sector and is the leading provider of mortgage advice qualifications in the United Kingdom thus making it together with the CII the perfect institutions for an equity release adviser to obtain qualification on specific equity release plans.
