EQRS — Equity Release Solutions

What EQRS covers

• •Matching lifetime mortgages, home reversion and alternatives to a stated need
• •When downsizing, a RIO or doing nothing is more suitable than equity release
• •Benefits, tax and care-funding consequences of releasing cash from the home
• •Joint borrowers, last-survivor, occupancy and third-party occupiers
• •Illustrating roll-up, NNEG and the cost of cash now versus inheritance later
• •Advice process: independent legal advice, family involvement, Consumer Duty

3 free EQRS practice questions

Straight from Mock Paper 1, in the real exam style — no sign-up, no paywall.

1. Q1.Given Irene's stated need — a modest, ongoing £400 a month top-up rather than one large sum — which structure is most suitable?

   1. AA maximum lump-sum lifetime mortgage taken in full today, to guarantee the rate is fixed before it can rise
   2. BA home reversion plan covering 100% of the property
   3. CA drawdown lifetime mortgage: a small initial release with a reserve facility she draws down as needed
   4. DAn interest-only lifetime mortgage requiring full monthly interest payments she cannot evidence affording
   Reveal the answer

   C is correct. Irene's need is a recurring modest top-up, not a single large sum. A drawdown facility lets her release only what she needs when she needs it, so interest only accrues on money actually drawn — minimising the rolled-up cost compared with taking the maximum lump sum on day one.

2. Q2.Before recommending equity release, the adviser must explore alternatives with Irene and record the outcome. Which of these should be discussed FIRST?

   1. ADownsizing to a smaller property, family assistance, her existing savings, and any local grants for repairs (such as a Disabled Facilities Grant or home improvement agency support)
   2. BWhich equity release lender pays the highest procuration fee
   3. CWhether Irene should remortgage onto a standard repayment mortgage at age 74
   4. DConverting her Attendance Allowance into a lump sum
   Reveal the answer

   A is correct. Suitability and Consumer Duty require cheaper or less risky alternatives to be considered first — downsizing, family help, existing savings and any available grants — with reasons for rejecting them recorded. Irene has already said she does not want to move, but that preference must still be explored and documented, not assumed.

3. Q3.Irene asks what actually happens to the interest on a lifetime mortgage if she does not pay it. The correct explanation is:

   1. AIt is written off after five years
   2. BInterest is only charged if she draws more than £10,000
   3. CThe lender pays the interest on her behalf from a government fund
   4. DIt typically rolls up and compounds, added to the loan each year, until the loan is repaid on death, entering permanent long-term care, or sale of the home
   Reveal the answer

   D is correct. On a standard roll-up lifetime mortgage, unpaid interest compounds annually and is added to the loan balance, growing over time until a repayment trigger — death, permanent entry into long-term care, or sale — is reached.

How to pass EQRS

• ✓Read the client's stated priority before every 'most suitable' question — cheap is not the same as suitable.
• ✓EQRS loves the alternative that was mentioned in the scenario and then ignored: downsizing, a RIO, a grant.
• ✓Budget about 20 minutes per case study and answer on first pass — 30 questions in an hour is tighter than it looks.

EQRS exam — common questions