The Intermediary – July 2025 - Flipbook - Page 23
L AT E R L I F E L E N D I N G
In focus
– property types, and even credit
history. Navigating this labyrinth
of product variations and lender
appetites is a full-time endeavour
in itself.
Big picture
The interconnectedness of later life
financial planning makes it impossible
to view lending in isolation.
A mortgage adviser focused
solely on securing a loan might
overlook the broader implications
for a client’s retirement income
strategy, their potential need for
long-term care, or their inheritance
tax liabilities. For example,
releasing equity from a property can
significantly impact the value of an
estate, affecting the inheritance le to
beneficiaries.
Similarly, the availability of certain
state benefits can be means-tested,
meaning that a lump sum from equity
release could inadvertently disqualify
a client from crucial support. Estate
planning, including the draing of
wills and consideration of trusts,
becomes paramount to ensure a
client’s wishes are respected and their
assets are managed efficiently upon
their passing.
The fundamental issue is that no
single professional can realistically be
an expert in conventional mortgage
borrowing for younger clients,
the intricacies of later life lending,
comprehensive retirement planning,
the complexities of long-term care
funding, the nuances of Inheritance
Tax planning, the labyrinth of state
benefits, and meticulous estate
planning. Each of these fields requires
dedicated study, ongoing professional
development, and practical experience
to truly master.
Expecting a single adviser to possess
deep knowledge across all these
specialisms places an unrealistic
burden upon them, and more
critically, risks suboptimal outcomes
for clients, who deserve holistic and
truly informed guidance.
Therefore, the sector urgently
needs to define a clearer strategy for
serving clients in these increasingly
complicated but profoundly
necessary areas.
This could involve several
approaches. First, fostering greater
collaboration between specialist
advisers. Instead of aempting to be a
‘jack of all trades’, mortgage advisers
could specialise in later life lending,
working in tandem with financial
planners who focus on retirement
and estate planning, and perhaps even
legal professionals specialising in wills
and trusts. This collaborative model
would ensure clients receive expert
advice across all relevant domains.
Second, developing enhanced
accreditation and educational
pathways specifically for later life
financial advice.
While some accreditations exist
– for example, from the Society of
Later Life Advisers – a more widely
recognised and rigorous standard that
encompasses the breadth of financial
considerations for older clients
is essential.
This would provide advisers with
the necessary knowledge, and clients
with the confidence that they are
receiving truly comprehensive advice.
Finally, embracing technological
solutions could streamline the initial
information gathering and product
matching process, freeing up advisers
to focus on the nuanced, humancentric aspects of advice.
Intelligent platforms could help
identify suitable lending options
based on a comprehensive assessment
of a client’s financial position and
objectives, flag potential conflicts with
other areas of their financial plan,
and prompt advisers to consider all
relevant aspects.
In conclusion, the lending
market for those over 55 has become
exceptionally complex due to evolving
demographics, stringent regulation,
and a proliferation of specialised
financial products.
The sheer breadth of knowledge
required to advise effectively across
conventional mortgages, later life
lending, retirement planning, longterm care, Inheritance Tax, state
benefits, and estate planning is beyond
the scope of a single expert.
To truly serve this vital
demographic, the financial services
sector must embrace greater
specialisation, inter-professional
collaboration, and robust educational
frameworks, ensuring that older
clients receive the holistic, expert
advice they genuinely need and
deserve as they navigate their
later years. ●
July 2025 | The Intermediary
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