A mortgage lender for people 50 to 90 plus is calling for greater clarity and meaning on what ‘later life lending’ really means as it raises concerns it has become a synonym for equity release when there are other options available to older borrowers.
Leon Diamond, LiveMore founder and CEO said the term ‘later life lending’ had become – incorrectly – interchangeable with equity release creating ‘a misunderstanding that risks limiting consumer choice, misguiding advisers and stifling innovation across the market.’
“Equity release has dominated the narrative for too long. Later life lending is not one product. It’s about understanding people’s full financial picture starting in their fifties whilst earning, but also as they move into and through retirement. That means recognising pension assets, annuity income, savings, investments and other income streams as part of the affordability puzzle. Without a clear definition, consumers and advisers are being short-changed.”
He goes on to say true later life lending includes a range of flexible mortgage products beyond equity release – including retirement interest-only (RIO) mortgages, capital and interest repayment options and standard interest-only products; all designed with affordability in mind. LiveMore are proposing a more structured and inclusive approach be adopted that
- Empowers consumers with clearer information and better choices.
- Equips brokers to deliver holistic advice, tailored to real-life financial circumstances.
- Encourages lenders to innovate responsibly and confidently.
- Supports regulators in upholding Consumer Duty principles around fairness, transparency and suitability.
The lender say they acknowledge current Financial Conduct Authority (FCA) rules which require advisers to consider alternatives to equity release and assess a wide range of income sources for affordability but they say ‘clearer language and stronger collaboration are essential to delivering better outcomes for customers.’ To that end, LiveMore are calling for the creation of an open forum bringing together lenders, brokers, trade bodies and regulators to define the category and improve standards across the board.
“We’re not saying equity release doesn’t have a place. We’re saying it’s just one tool – not the whole toolkit. Older borrowers deserve a lending landscape that reflects their real lives, not outdated assumptions.”
adds Diamond, and with an ageing population and growing demand for financial flexibility later in life, the time for action is now.
“Let’s move from confusion to clarity. Let’s redefine later life lending – not as a euphemism for equity release, but as a diverse, future-focused category in its own right.”
