The Intermediary –- June 2026 - Flipbook - Page 83
L AT E R L I F E L E N D I N G
Opinion
Navigating a more
considered market
E
conomic uncertainty
is continuing to affect
borrower confidence,
and many people
are taking longer to
make decisions as
they navigate cost pressures, rate
uncertainty and a more unpredictable
backdrop. The later life lending
market is no exception, but this does
represent an opportunity for brokers.
At the Vernon, we’re not quite
seeing the same story play out in
practice. The need for later life
borrowing has not disappeared, and
our own lending activity in this area
increased by 215% year-on-year in the
first quarter of 2026.
More than anything, what we’re
seeing is borrowers taking a more
considered approach – exploring
different products, asking more
questions and spending longer
weighing up what feels right for
their circumstances.
That maers, because later life
borrowers are not all looking for
the same thing. Some want more
certainty around repayments, some
are focused on affordability, and
others are thinking longer term
about estate planning or how best to
support family members. In that kind
of market, product choice becomes
increasingly important.
The latest UK Finance figures do
reflect some caution, with 36,050 new
later life loans advanced in Q1 2026,
down 4.8% year-on-year.
But the overall value of lending
held up at £6.0bn, while Retirement
Interest-Only (RIO) lending rose by
5.4%, suggesting borrowers are still
active but becoming more selective
about the type of product they choose.
That shi tells us something
important. Later life borrowing is
no longer defined by one customer
profile or one clear objective. Needs
are becoming more varied, and that
means lenders and advisers need the
flexibility to respond with solutions
that reflect real lives rather than
simplified assumptions.
It also makes the adviser’s role even
more valuable. In a more considered
market, advice is less about finding a
single answer and more about helping
customers understand the trade-offs
between different options.
That’s where having the right
range of products really maers. A
lifetime product will not always be the
best fit; for some borrowers, a 2- or
5-year option may be more suitable.
Breadth of choice gives brokers more
opportunity to shape solutions around
someone’s income, affordability
and lifestyle.
Enduring demand
Good advice helps borrowers find the right path
Uncertainty is likely to remain
a feature of the market for some
time yet, but that does not mean
opportunity has disappeared.
Demand is still there; it’s just
presenting differently. Borrowers
may be taking longer to act, but that
oen reflects a more thoughtful
decision-making process rather than a
lack of need.
This is also happening against
a broader backdrop of retirement
BRENDAN CROWSHAW
is head of mortgage
and savings distribution
at Vernon Building Society
funding pressure. The Pensions
Commission recently reported that
15 million people are currently under
saving for retirement, and that 45% of
working-age adults are not saving into
a pension at all.
That wider context reinforces
why housing wealth is likely to
play an increasingly important role
in supporting financial resilience
later in life.
Property potential
For many borrowers, property is
now their biggest financial asset, and
increasingly it is being viewed not
just as something to pass on, but as
a practical way to support income
needs, repay existing borrowing or
help family financially. Clearly, the
market isn’t going anywhere.
For brokers, that creates space for
more tailored, considered advice - the
kind that reflects not just product
suitability, but the wider context
of someone’s retirement plans,
family priorities and long-term
financial resilience.
For the market more broadly, it is a
reminder that while sentiment may
fluctuate, the need for flexible, welldesigned later life lending solutions
will continue to grow.
The opportunity is still there for
lenders and advisers who can respond
to that shi with breadth, clarity
and the confidence to support more
complex borrower needs. ●
June 2026 | The Intermediary
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