The Intermediary – July 2025 - Flipbook - Page 15
L AT E R L I F E L E N D I N G
In focus
must start earlier
Mainstream
mortgage brokers
[...] should be seizing
the opportunity to
break down siloes and
work collaboratively
in order to deliver
better outcomes
for customers”
loan-to-values (LTVs), shorter and
fixed early redemption charges, and
increased flexibility around regular
payment options.
These lifetime mortgages, which
allow some or all of the interest to be
served, are designed to help mitigate
the impact of compound interest and
evolve with borrowers as they move
into retirement.
These products offer the option to
eventually transition into a full rollup product with a fixed interest rate
for life, and certainty of tenure, once
any mandatory payment terms have
been met.
There are products available which
incentivise customers to manage
their cost of borrowing by reducing
the interest rate while making
regular repayments.The worry is that
awareness of these products among
potential customers is poor, and
even more worryingly, awareness
among many intermediaries is not
much beer.
These products are suitable for
a significant cohort of over-50s
customers, and should be viewed as
very much part of the mainstream
– and at least considered alongside
other options for every customer in
this demographic.
Seizing the opportunity
Mainstream mortgage brokers,
generalist independent financial
advisers (IFAs), wealth managers
and equity release specialists – and
the trade bodies that represent them
– should be seizing the opportunity
to break down siloes and work
collaboratively in order to deliver
beer outcomes for customers.
Air is looking to do our bit and
engage with stakeholders across
the ecosystem to ensure a beer
functioning market that works in the
interests of older customers.
We believe that a thriving advice
sector is crucial to meeting the
challenge, and we are focused on
equipping advisers with the tools
they need to deliver great advice
cost effectively.
That means working with
mainstream sourcing platforms and
customer relationship management
(CRM) providers to create efficient
and integrated journeys. We are also
making changes to our Academy
proposition, and with support from
our lender partners, we want to make
this accessible to all intermediaries,
free of charge, to help them upskill
and maintain competency in
the market.
Our fact-find learning programme –
which is London Institute of Banking
& Finance (LIBF) accredited learning,
and wrien and endorsed by the
Equity Release Council – is a great
starting point.
Alongside our WriteRoute journey
that includes fact-find and suitability
report functionality, we can support
advisers in ensuring all options are
properly represented through the
research process so that ultimately the
right recommendations can be made.
Later life lending should be firmly
established as part of mainstream
mortgage advice and broader
retirement planning.
As a sector, we must seize this
opportunity. Let’s make our voices
heard in feeding back on the FCA’s
discussion paper – but also, here and
now, embrace the support available to
allow us to deliver beer outcomes for
older customers. ●
July 2025 | The Intermediary
15
