The Intermediary – September 2025 - Flipbook - Page 72
L AT E R L I F E L E N D I N G
Opinion
Brokers need the
full picture
L
ater life lending has
become one of the most
talked-about areas of the
mortgage market, but too
oen it is still reduced to
a single product category:
equity release.
While equity release is an important
solution for many, this narrow lens
can confuse consumers, constrain
brokers, and slow innovation.
Later life lending is a diverse and
evolving market with multiple
solutions designed for borrowers
aged over 50, and education on the
full range of options is key to helping
brokers deliver the right outcomes
to customers.
Looking beyond
For years, the term ‘later life lending’
has been used interchangeably with
equity release – also known as lifetime
mortgages. Yet four out of the five
loan types for over-50s are not equity
release products. Options such as
retirement interest-only (RIO), capital
and interest repayment mortgages,
and interest-only products are
all available.
This maers, because when brokers
and consumers think only of equity
release, other flexible and costeffective solutions may be overlooked.
Equity release has its place, but it
should be considered alongside other
tools to build advice that is tailored to
individual needs.
The cost
When education falls short, everyone
misses out:
Consumers may not be shown the
most suitable product because they
don’t know it exists.
Brokers risk narrowing their
advice, sometimes inadvertently,
to the products they are most
familiar with.
Lenders face slower innovation if
the market continues to be framed
too narrowly.
The Financial Conduct Authority
(FCA) already encourages advisers to
consider a broad range of options, but
without the right knowledge, sourcing
systems, and confidence, those
principles won’t translate into the best
outcomes for clients.
Heart of advice
Broker education is the linchpin of a
stronger later life lending market. It
should focus on three areas:
1. Clarity of definition – Advisers must
understand that later life lending
is an umbrella category covering
all new borrowing in and beyond
retirement, not just equity release.
A piece of the puzzle: Focusing on equity release risks missing the other solutions available
70
The Intermediary | September 2025
LEON DIAMOND
is founder and CEO at LiveMore
2. Holistic advice – Training should
emphasise assessing the full
financial picture: pensions,
annuities, employment income,
savings and family responsibilities.
This shis the conversation from
products to people.
3. Confidence with complexity – With
an expanding suite of products
and hybrid offerings, brokers
need the tools to compare options
transparently. Technology, such
as LiveMore’s Mortgage Matcher®,
can help brokers navigate this
landscape quickly and compliantly,
but education ensures they use these
tools effectively.
Education matters
The UK’s ageing population is
financially diverse. Many older
borrowers are still working, receiving
mixed incomes, supporting younger
family members, or looking to move
later in life.
They need advice that reflects this
complexity. If brokers aren’t equipped
to offer it, consumers will continue to
fall through the cracks.
Later life lending is not a niche;
it is a rapidly growing and key
element of the mortgage market. By
equipping brokers with knowledge of
the full suite of options, the industry
can ensure advice is genuinely
customer-centric and aligned with
Consumer Duty.
The opportunity is clear, but
it depends on brokers having the
education and confidence to guide
clients through the full spectrum of
later life lending options.
Equity release remains a valuable
part of that picture, but it is only
one piece. The real priority is giving
brokers the tools and training to see –
and share – the whole picture. ●
