Equity Release 

Guide to later life mortgages

  • List what types of later life mortgage products are available and how they differ.
  • Describe what is driving the growth of this market and why clients are demanding these products.
  • Identify what advisers can do to help later life mortgage clients and what they need to know about suitability and risk.
CPD
Approx.60min
Guide to later life mortgages

Introduction

Recent rising demand for mortgage products that suit the needs of older borrowers, has meant the industry has been forced to innovate.

There is now a raft of options for borrowers who may have retired and be well into their later years.

Of course, these types of products are not suitable for all older clients. So advisers will need to help clients weigh up the suitability and risks of having to make mortgage repayments well into old age.

As Damian Thompson, director of mortgages at Aldermore points out: "Age along should not be a barrier to lending in later life."

He says: "This means specialist lenders are important to this sector as they can provide a more in-depth, personal approach that allows time to assess ability to lend, considering individual customer needs."

For many, this type of financial product will require specialist advice, so advisers may well need to consider how they deal with these types of enquiries in future.

The features in this guide will consider what type of mortgage products are available to older borrowers and what has been behind the growth in later life mortgage lending.

The guide will also cover what role advisers can play in meeting the needs of older mortgage clients, as well as what both advisers and their clients need to be aware of when it comes to suitability and risk.

This guide is worth an indicative 60 minutes of CPD.

Contributors to this guide: Malcolm Wallace, director of Parsonage Financial Planning; David Hollingworth, associate director, communications at L&C Mortgages; Paul Tilley, chief executive of esbs; Chris Buchanan, product and oversight director at Legal & General Home Finance; Damian Thompson, director of mortgages at Aldermore; Steve Paterson, director of Teeside Money; Stuart Wilson, corporate marketing director at more2life; Emma Walker, chief marketing officer at Lifesearch; Rob Harvey, head of protection advice at Drewberry; Zane Groves, principal at Lightblue Online; The Equity Release Council; Office for National Statistics; more2life.

Ellie Duncan is features editor of FTAdviser and Financial Adviser, and Saloni Sardana is a features writer at FTAdviser and Financial Adviser

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Mr Wilson, more than a quarter of clients cite what as a reason for taking out an equity release loan?

  2. Mr Tilley says he expects to see what in later life mortgages as people live and work for longer?

  3. Mr Wallace makes the following statement: "Lifetime mortgages generally have made it to the mainstream as far as lenders are concerned." True or false?

  4. Who or what has been slow to react to the change in later life mortgages, according to Mr Hollingworth?

  5. Mr Thompson says over the past year, the options open to over-50s have what?

  6. Mr Paterson says there are pros and cons of being an older mortgage client. But which one of the below is considered a con and not a pro?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • List what types of later life mortgage products are available and how they differ.
  • Describe what is driving the growth of this market and why clients are demanding these products.
  • Identify what advisers can do to help later life mortgage clients and what they need to know about suitability and risk.

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