Later Life Lending - Opportunities and Risk

Having worked for Parity Trust for nearly 14 years I?ve seen some significant changes amongst our older borrowers. A higher proportion of cases amongst this demographic are complex. One thing is for certain, there are now fewer people with the ability to retire debt free and with sufficient income/savings to support a comfortable lifestyle.

Given the expectation that the later life lending market will double in the next ten years, it's not surprising that there is regulatory interest.   

It's especially important that advisors have a broad knowledge of this market when dealing with potential mortgage applicants. Purchasing what might be a ?lifetime? liability represents a serious commitment for older people especially as it could ultimately be their last attempt to secure their financial future.

The good news is that with a growing market and more competition, the sector is evolving to offer an improved and more innovative product range.  However, this could also mean more complexity or a larger number of considerations for the customer.

As well as the standard requirement to ensure customers are fully aware of the implications of any product proposed, it would also be prudent for advisers to ensure other possible alternatives have been highlighted. A broad knowledge and therefore a holistic approach will help to ensure more clients make better-informed decisions.

Take for example, a case study where an older couple come to the end of term of an interest-only mortgage with a small amount to pay off. The couple could be advised to apply for an equity release product. However, there may be other viable options including mainstream lending, accessing some funds from an occupational pension or consideration of state benefits that could be claimed.

I?ve recently had the opportunity to attend the pilot of the UK Finance Later Life Lending CPD webinar programme for advisers, in partnership with the London Institute of Banking & Finance (LIBF). It was useful to revisit topics that I hadn't properly broached since revising for some CII exams a long time ago. As well as gaining some very useful knowledge, it reinforced the importance of CPD in a sector that's experiencing growth at a rapid pace. In addition, it was helpful to have the ability to interact with the course and to download the presentation content which I have subsequently referred to. In summary I?m keen to continue to broaden my knowledge which will help to improve the service we provide for our older clients.


UK Finance and the London Institute of Banking and Finance have created a webinar series for advisers on Later Life Lending - 17 March

For the benefit of all advisers, we have brought together a series of CPD webinars on subjects that bridge the advice gaps between Equity Release Advisers, Financial Advisers and Mortgage Advisers. This webinar programme will equip all advisers with an understanding of each other's sectors and up-to-date information that will support them to support older customers. Delegates will receive a digital CDP badge.

Visit the webpage to learn more

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