The Intermediary – October 2026 - Flipbook - Page 70
L AT E R L I F E L E N D I N G
Opinion
Reshaping
how wealth
moves through
families
J
ust when many
homeowners were hoping
for greater stability,
mortgage rates have once
again started moving
upwards. For many, that
will mean reassessing household
budgets, reviewing existing borrowing
arrangements and considering their
options as fixed-term deals come to
an end.
But while rising rates inevitably
dominate headlines, they also
highlight a much bigger shi taking
place beneath the surface of the
market, as affordability challenges
are increasingly no longer confined to
individual borrowers.
Instead, they’re becoming family
challenges, changing the way people
think about housing wealth, financial
planning and the role advice can play.
For advisers, the latest rate
movements should serve as a
reminder that some of the most
valuable client conversations are no
longer simply about finding the next
mortgage product. They are about
understanding how wealth can be
deployed across generations to support
wider family objectives.
Intergenerational
Public discussion of mortgage
affordability understandably focuses
on first-time buyers and younger
households. Higher borrowing
costs continue to create significant
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The Intermediary | October 2026
challenges for those looking to
purchase their first home or move up
the property ladder.
However, the reality is that many
parents and grandparents are
increasingly becoming part of the
solution. Whether providing financial
support towards deposits, helping
family members manage higher
monthly repayments or looking
for ways to pass on wealth during
their lifetime, older generations are
playing a growing role in enabling
homeownership.
At the same time, many more
homeowners themselves are carrying
mortgage debt later into life than
previous generations – borrowing
paerns have changed significantly
over the past two decades, and it
is now far more common to see
clients approaching retirement with
outstanding mortgage balances or
ongoing credit commitments.
This creates a unique dynamic
as many older homeowners are
simultaneously looking aer
their own financial future while
also supporting children and
grandchildren facing affordability
challenges of their own.
As rates rise, these competing
demands inevitably become more
pronounced.
An active asset
Historically, property wealth was
oen viewed as something to preserve,
protecting value within the family
home before eventually passing it on
as part of an inheritance.
Today, that mindset is evolving, and
many consumers are recognising that
housing wealth can be used proactively
during their lifetime to support both
their own financial wellbeing and that
of the next generation.
Rather than waiting for wealth
to transfer aer death, families are
increasingly exploring how it can be
utilised when it is needed most.
Mortgage rate rises add further
momentum to this trend, and
as borrowing becomes more
expensive elsewhere, the value of
existing property wealth becomes
increasingly apparent.
For many households, housing
equity represents one of the largest
financial resources available to them,
and the key question is no longer
whether property wealth should form
part of financial planning, but how it
can be used most effectively.
Broader conversations
This is where advisers have a
particularly important role to play
– for instance, clients may arrive
wanting to discuss a remortgage,
but the underlying issue could be far
more complex.
As a result, advisers who can
facilitate those wider conversations are
likely to become increasingly valuable
to clients. Rather than focusing
