The Intermediary – August 2026 - Flipbook - Page 36
L AT E R L I F E L E N D I N G
Opinion
You never step
into the same
market twice
M
ore than 2,500
years ago, the
Greek philosopher
Heraclitus
observed that no
man ever steps
into the same river twice. The river
may appear unchanged, but the water
is constantly moving.
Markets are much the same. The
biggest changes rarely arrive with
dramatic headlines or sudden spikes
of activity. Instead, they emerge
through thousands of small continual
decisions, until one day it becomes
clear, the market itself has evolved.
The latest Equity Release Council
figures illustrate exactly that.
At first glance, the story is
straightforward. Total lending
increased by 4% during the second
quarter of 2026. Customer numbers
also rose, while new customer activity
returned to the same level recorded a
year earlier aer a slower first quarter.
These are encouraging signs, but they
are not the full story.
Look beneath the headline figures
and an equally significant trend
begins to emerge. Consumers are
changing the way they think about
housing wealth.
For many years, later life lending
was oen viewed as a single financial
event. Customers would decide the
amount they wanted to borrow,
release the funds and move on. Today’s
customers are behaving differently.
Average new lump sum borrowing
continues to fall. Drawdown remains
the product of choice for most new
customers. Existing customers are
increasingly returning for further
advances only when they need them,
rather than borrowing the maximum
available at the outset.
Taken individually, those
statistics may seem interesting but
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The Intermediary | August 2026
unremarkable. Together, they reveal
something much more important.
Consumers are becoming more
deliberate in how they access housing
wealth. That should be welcomed.
Retirement itself has changed.
It is no longer a fixed point where
employment ends, and financial
decisions are seled. People are living
longer, working more flexibly and
facing changing financial priorities
over what may now be a retirement
lasting three decades or more.
Financial needs do not arrive
all at once. Home improvements,
helping children or grandchildren,
supplementing pension income and
funding later life care oen arise at
different stages. It is therefore entirely
logical that consumers increasingly
want financial solutions that can
adapt alongside them. The market has
rightfully adapted.
Measuring success
Today’s later life lending products
offer far greater flexibility than
many people still assume. Customers
can increasingly tailor borrowing
around their circumstances, access
funds gradually and, under the
Equity Release Council’s Standards,
benefit from protections that have
continued to strengthen as the market
has matured.
Our latest adviser survey reflects
this changing behaviour. More firms
reported increases in enquiries,
applications and completions
during the second quarter than
declines. At the same time, advisers
consistently report that many
customers are delaying decisions
because of borrowing costs rather than
walking away altogether. This is a
crucial distinction.
It suggests demand has not
disappeared. Consumers are simply
JIM BOYD
is chief executive of the
Equity Release Council
Consumers
are becoming more
deliberate in how they
access housing wealth”
taking more time, weighing their
options carefully and seeking
reassurance before making an
important financial decision. That is
not a sign of a weaker market. It is the
hallmark of a considered one.
The Financial Conduct Authority
(FCA) recently described later life
lending as a potential fourth pillar
alongside pensions, savings and
investments. That reflects a broader
shi already taking place across
retirement planning. Housing wealth
is part of a wider financial picture
rather than as a solution of last resort.
Success should not simply be judged
by the amount lent in any single
quarter. It should also be measured
by whether consumers are making
informed decisions, supported
by high-quality advice, strong
protections and products that reflect
the realities of modern retirement.
The latest figures suggest that is
exactly what is beginning to happen.
Heraclitus understood that change
is oen difficult to recognise while
it is happening. The river still looks
familiar, even as every drop of water
glides away downstream.
The same is true of today’s
later life lending market. The
headline numbers tell one story.
Consumer behaviour tells an equally
important one. ●
