The Intermediary –- May 2026 - Flipbook - Page 78
L AT E R L I F E L E N D I N G
Opinion
A sector primed
for growth
T
he equity release
market is at an
inflection point. For
years it has played
second fiddle to the
much larger residential
mortgage market – a £300bn
behemoth that has long dominated
both column inches and adviser
aention. But that is changing.
The Financial Conduct Authority’s
(FCA) later life mortgage market study
has placed the sector firmly in the
spotlight – and the implications for
advisers are significant.
The FCA has suggested that
specialist later life lending products
may have a far greater role to play
in supporting good outcomes
for customers than they do at
present. But too oen, customers
are unaware of their options and
those aged 55 and over that do
find their way to a mainstream
mortgage broker are being directed
to a standard remortgage or product
transfer instead.
Lifetime mortgages or retirement
interest-only (RIO) products may not
be right for everyone but for many
older customers they can offer a more
flexible way of managing borrowing
while also allowing lifestyle and other
objectives to be achieved.
Reading between the lines, it is this
mismatch that the FCA wants to get to
the boom of.
For advisers, this creates both a
challenge and an opportunity. The
challenge is clear. Later life lending
advice is a specialist discipline.
Understanding later life criteria,
sourcing the right products,
navigating the nuances of later life
conveyancing and underwriting
requires knowledge and tools that
not every adviser currently has at
their disposal.
This helps explain why the equity
release market sits at around £2.6bn
of lending a year – a frankly woeful
figure when considered against the
£3.8tn of unencumbered housing
equity siing in the hands of the over
60s and the circa £60bn of mortgage
lending done for customers over the
age of 55 each year.
The opportunity, therefore,
is significant. The UK’s ageing
population – many of whom face a
shortfall in pensions and investments
given longevity and cost-of-living
considerations – means demand for
later life lending solutions is only
going one way.
Not to be ignored
Small shoots with great potential
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The Intermediary | May 2026
Advisers who develop the skills
and confidence to engage with this
market – or who build strong referral
relationships with trusted specialists
– will be beer placed to serve their
clients and grow their businesses.
It is precisely for this reason that
Air hosted its Growth Summit earlier
this month. The event brought
together advisers from across the
market, mainstream mortgage
advisers, wealth managers, IFAs
and specialists, placing advisers at
the heart of the Summit to ensure
sessions were practical, relevant and
action-oriented. The aim was to equip
WILL HALE
is CEO at Air
aendees with the practical skills and
knowledge needed to engage more
confidently with later life lending.
From questioning strategies that
uncover client needs more effectively,
to the intricacies of later life criteria
and product sourcing, the Summit
was designed to be immediately
actionable, giving aendees the tools
to return to their businesses and make
a difference from day one.
For advisers who are not yet active in
this space, the message from the FCA’s
market study should serve as a prompt
to act. With combined of lending
of under £3bn last year, the equity
release and RIO market is small, at
least in comparison to the much larger
mainstream mortgage market.
However, that does not mean it
can be ignored and the fact that the
FCA is carrying out a market study
on the sector demonstrates it believes
lifetime mortgages and RIOs should
play a much larger role than they
currently do. For advisers, this means
you should consider your own later
life lending advice propositions sooner
rather than later.
We’re highly confident that the
sector has a promising future. And at
Air, we will continue to play a central
role in ensuring the profession has
the knowledge, tools and support
needed to build strong later life
lending propositions, and above all,
to deliver the best possible outcomes
for clients. ●
