The Intermediary – February 2026 - Flipbook - Page 75
L AT E R L I F E L E N D I N G
Opinion
Later life lending
continues to evolve
L
ater life lending is no
longer a side discussion
outside of the mortgage
mainstream. The
needs expectations and
financial behaviour
of older homeowners have already
shied, and now, regulation is starting
to follow that reality, rather than work
against it.
One of the clearest signs that
later life lending is shiing into the
mainstream is the growing overlap
between traditional mortgages and
later life products for customers
over-55. Many borrowers now take
out mortgages that run well into
retirement, oen without a clear plan
for how those loans will be managed as
income changes or pension provision
falls short of expectations.
At the same time, lifetime
mortgages and retirement interestonly (RIO) products have evolved,
with greater flexibility, voluntary
repayments and hybrid features that
make them relevant far earlier in later
life than was once the case. The old
idea that there is a sharp line between
‘normal’ mortgages and later life
solutions is becoming less credible
by the day.
Structural change
The Financial Conduct Authority
(FCA) has been clear in its recent work
that this blurring of markets is not a
future problem but a current one. Its
focus on enhancing later life lending,
improving market readiness and
considering holistic advice reflects
a recognition that the system needs
to adapt to how customers actually
live, rather than how regulation has
historically been structured.
Despite this shi, the structure of
the market deserves aention. There
are around 179 active lenders in the
wider mortgage market, compared
with around 16 active lenders in
the equity release space. There are
estimated to be more than 35,000
mortgage advisers, yet only 6,000 or
so hold the qualification to advise on
equity release, with industry estimates
suggesting only 2,000 are active.
This imbalance maers because
it shapes customer outcomes. Large
numbers of older homeowners are
advised within a framework that
naturally steers conversations towards
mainstream products, even where a
later life option may be more suitable
or more aligned with the client’s
wider needs.
The FCA’s intention to how advice
silos may be reduced means this gap
should begin to disappear. Advisers
do not all need to become later life
specialists, but they will need to
be far beer at recognising when
later life lending should be part of
the conversation.
Planning on the rise
Wider financial planning trends are
also pushing later life lending into
the centre of advice. Recent research
from Air highlights a sharp rise in
pension withdrawals, underlining
how many clients are already drawing
on retirement pots earlier or more
heavily than expected.
For advisers, this reinforces the
holistic advice future; the need to
look at the full picture, including
income, pensions, property and
family support, rather than treating
the mortgage as a standalone decision.
Clients increasingly expect joinedup conversations, and regulation
is moving in the same direction,
with outcomes, not product labels,
becoming the key test.
What this means for advisers
As later life lending moves from niche
to norm, advisers face a choice. They
can wait for regulatory change to force
a shi in approach, or they can start
adapting now by improving front-end
triage, asking beer questions of older
clients and building clearer routes into
specialist support where needed.
DAVE HARRIS
is CEO at more2life
This is not about adding complexity
for the sake of it. It is about reducing
risk, improving suitability and
ensuring clients are not denied
access to options simply because of
how advice is structured. Firms that
engage early will be beer placed as
regulatory expectations sharpen and
as consumer demand continues to rise.
Supporting this shift
At more2life, we believe later life
lending should sit naturally within
modern mortgage advice, supported
by clear information, practical tools
and strong adviser partnerships. Our
focus has always been on helping
advisers understand where later
life solutions fit, how they compare
with mainstream options, and how
they can be used responsibly to meet
real client needs.
Through ongoing education,
practical support and technology that
improves certainty and confidence
at an early stage, we aim to make
later life lending easier to engage
with, whether advisers are active in
the sector or simply need to know
when to refer.
A call to act
We aim to track how the move from
niche to norm continues to unfold,
driven by regulation, demographics
and client behaviour. The shi is
already under way, and the pace will
only increase.
Advisers who recognise this now,
and who take steps to adapt their
approach, will be beer placed to
deliver good outcomes for older clients
and to operate with confidence as
expectations change. Those who wait
may find that the market, and the
regulator, have already moved on. ●
February 2026 | The Intermediary
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