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Training·Explained

What qualifications you need to advise on second-charge and later-life mortgages

Second charges sit under the same competence rules as first charges. Equity release adds a qualification of its own, and bridging a gap.

By Lending Intelligence2 min read
The ruleStaff advising on regulated mortgages must hold a qualification from the FCA's list, or be working towards one under supervision.
Who it applies toEvery adviser on regulated mortgage contracts, second charge included; equity release is a separate activity.
What to doPass the regulatory module before advising, then complete the full qualification within 48 months.

The rule

Under the FCA's Training and Competence sourcebook, a firm can't assess someone as competent to advise on regulated mortgages until they have shown they are competent and passed every module of an appropriate qualification (TC 2.1.1R). Until then they must be supervised (TC 2.1.2R).1

They can't advise at all before passing the regulatory module (TC 2.1.6R), and must complete the full qualification within 48 months of starting (TC 2.2A.1R). Anyone who misses the deadline has to stop advising until they qualify (TC 2.2A.3R).1,2

Second charge is covered the same way

The FCA's definition of a regulated mortgage contract has no first-charge condition, so second-charge mortgages are caught. When they moved into the regime on 21 March 2016, the FCA said second-charge firms would have to "comply with the existing appropriate qualification requirements", and gave existing staff until 21 September 2018 to qualify.5,6

Mortgages for a business purpose are a separate activity in the rules, with no qualification requirement (TC App 1, activity 20A).3

Which qualifications count

The list is in TC Appendix 4. For mortgage advice it includes the LIBF's Certificate in Mortgage Advice and Practice (CeMAP) and Diploma for Mortgage Advice and Practice, and the CII's Certificate in Mortgage Advice and Certificate in Advanced Mortgage Advice.4

CeMAP has five units in three modules, each with a 70% pass mark. The LIBF charges £735 for the full qualification, or £810 booked module by module, and allows 18 months to complete it. Its syllabus covers second-charge regulation and bridging finance.7,8

Equity release needs its own

Advising on equity release, meaning lifetime mortgages and home reversion plans, is a separate activity with its own requirement (TC App 1, activity 21). CeMAP alone isn't listed for it.3,4

The listed qualifications are the LIBF's Certificate in Regulated Equity Release (CeRER), whose full award includes the CeMAP units, and the CII's Certificate in Equity Release. The LIBF charges £275 for the two equity release units.4,9

Bridging

A regulated bridging loan is a regulated mortgage contract, so the mortgage qualification applies. For unregulated bridging and development finance there is no FCA requirement; the LIBF's Certified Practitioner in Specialist Property Finance, built with the BDLA and FIBA, covers that market but isn't on the FCA's list.4,10

Sources

  1. 1FCA Handbook, “TC 2.1 Assessing and maintaining competence (updated 6 April 2026)”TC 2.1.1R, 2.1.2R and 2.1.6R.
  2. 2FCA Handbook, “TC 2.2A Time limits”The 48-month limit (TC 2.2A.1R) and stopping on missing it (TC 2.2A.3R).
  3. 3FCA Handbook, “TC Appendix 1: Activities and products/sectors to which TC applies”Activities 20, 20A and 21 and their qualification requirements.
  4. 4FCA Handbook, “TC Appendix 4: Appropriate Qualification tables (updated 3 October 2025)”The qualifications listed for mortgage advice and for equity release.
  5. 5FCA Handbook, “Glossary: regulated mortgage contract”The definition, with no first-charge condition.
  6. 6FCA, “PS15/9: Implementation of the Mortgage Credit Directive and the new regime for second charge mortgages (March 2015)”Second-charge firms meeting the existing qualification requirements, and the 21 September 2018 deadline.
  7. 7London Institute of Banking & Finance, “Certificate in Mortgage Advice and Practice (CeMAP)”Structure, fees and time to complete.
  8. 8London Institute of Banking & Finance, “CeMAP qualification specification (version 14, July 2026)”Pass marks and the second-charge and bridging content of MRT1 and MRT2.
  9. 9London Institute of Banking & Finance, “Certificate in Regulated Equity Release (CeRER)”The £275 fee and that CeRER includes the CeMAP units.
  10. 10London Institute of Banking & Finance, “Certified Practitioner in Specialist Property Finance (CPSP)”Coverage of bridging and development finance, built with FIBA and the BDLA.

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