Mortgage advisers are failing the over-50s on later life lending advice by not making them aware of all their options, Key Later Life Finance, equity release adviser, warns.
Bank of England figures show more than two out of five mortgages now run past retirement age highlighting the need for a new approach from mortgage advisers – but Key warns too many are ignoring options for customers in the later life lending market.
Key says the onus is on advisers to engage more proactively with their older customers and properly research the wider range of options in the later life lending market.
Analysis shows the over-50s own around £4.7 trillion in property wealth equivalent to 78% of all property wealth in the UK. Those aged 50 to 64 own around £2.183 trillion. Government data shows average pensioner incomes in retirement are currently £20,120 rising to £29,170 for couples.
Therefore, although this cohort of customers face challenges around taking debt into retirement and also potential shortfalls in retirement income, the property equity they have accumulated is a valuable asset and should form part of financial planning decisions. Will Hale, CEO Key Advice, said:
“All advisers have an obligation to consider all later life lending options for over-50s customers under Consumer Duty but too few are doing that and therefore failing their customers. Too many focus on their own area of expertise and do not think more widely.
There is a huge opportunity for mortgage advisers to grow their businesses and improve their customers’ lives by focusing more on this sector and ensuring they stay abreast of all the product innovation taking place.
Technology can help with tools such as Air’s Navigator or LiveMore’s Mortgage Matcher offering efficient ways of comparing products and supporting advisers in evidencing the consideration of all options.”
