Regulatory changes could open the door for a boom in retirement lending, equity release lender more 2 life has predicted.
The Financial Conduct Authority is looking at relaxing some of its equity release rules over concerns they may be restricting the market.
Under the proposed changes, the regulator said it would make it easier for providers to offer a type of lifetime mortgage that allows consumers to choose when to stop making interest payments.
The FCA is also looking into whether it should update its rules on how firms should determine the length of term when illustrating equity release products.
Changing the rules on lifetime lending would mean the FCA enables lenders to be more innovative, according to more 2 life.
The equity release lender stated it would also open up opportunities for key stakeholders in the market - including the Equity Release Council, the FCA, and the Council of Mortgage Lenders (CML) - to help move the market grow.
The result should be improving customer outcomes and offering more retirement lending options, it added.
Stuart Wilson, channel marketing director, more 2 life said: “This announcement from the FCA is great news for lenders, advisers and consumers alike.
“In particular, we are pleased to hear about the proposed changes to KFI projections as this will help facilitate a more personalised picture, tailored to the individual circumstances of every client.
“This is no longer a niche market, it has matured into a specialist financial planning area and we would welcome advisers, trade bodies and councils coming together to ensure lifetime lending is fully integrated into broader retirement planning strategies.”