Mortgage Advisers Can No Longer Treat Later Life Lending as a Niche

By Will Hale, CEO of Air

Later life lending is no longer a niche area of the mortgage market. It is a mainstream consideration, and every adviser working with customers over the age of 55 should be aware of the full range of options available.

The days when most people paid off their mortgage by their late 40s are behind us. The reality now is that the majority will carry mortgage debt into later life, in some cases for the rest of their lives. That is why this market matters and why it is time to shift how we think about it.

At its most straightforward, the definition of the market is simple: anyone over the age of 55 looking to borrow against their property. Starting from this point makes it easier to focus on the customer rather than the product. Products have evolved significantly, and it is vital to recognise that what was once considered specialist or peripheral is now part of everyday financial planning for older homeowners.

At Air, our role is to equip advisers with the tools and support they need to serve these customers. Our sourcing platform provides the most comprehensive view of later life lending products available, while our mortgage club offers both access to competitive lender terms and a help desk for complex cases. Alongside this, the Air Academy ensures advisers entering the market, or already operating in it, have the training and ongoing development required to stay competent and confident. With more than 10,000 members, we see first-hand how important it is to have a community and resources behind you when dealing with a fast-evolving sector.

One of the challenges advisers face is understanding how later life lending differs from the mainstream mortgage market. A key point is how products are priced. While most advisers are used to tracking Bank of England base rate movements, lifetime mortgages are priced off long-term gilt yields. Although base rates may have eased recently, gilt yields remain elevated, which means lifetime mortgage rates have stayed relatively high compared to what advisers may remember before the turbulence of 2022.

That context is important, but my message is clear: don’t start with the rate. Cost of borrowing will always matter, but these are long-term products. Advisers should first consider the customer’s needs – whether that is managing ongoing debt, funding home improvements, or planning for care – and then identify the product that best fits those needs. Rates will shift over time, and innovation in the market means these products need not always be for life. Remortgaging options are available, and some lenders are developing products without early repayment charges, giving customers flexibility if circumstances change.

Advisers should therefore focus on outcomes. Lifetime mortgages can provide solutions that help customers move forward with confidence, even in a market where predicting future interest rates is impossible. The adviser’s role is to guide them through those decisions, ensuring the product is appropriate for their situation, rather than being deterred by today’s pricing environment.

There is also an important regulatory dimension to consider. At present, equity release advice requires a standalone qualification beyond CeMAP. The Financial Conduct Authority has raised questions about whether this framework is fit for the future. From my perspective, later life lending is no longer a niche product area, and it would make sense to move towards a single qualification that covers the full spectrum of mortgage advice. This would ensure all advisers have a baseline understanding of the later life options available, even if not all choose to provide that advice directly.

For some, the right decision will be to gain the qualifications and tools necessary to advise in this space. For others, it may be more appropriate to work with a trusted referral partner. Both routes are valid, but what advisers cannot afford to do is ignore the market altogether. Consumer duty requires advisers to consider the full range of suitable options for clients. Commercially, it also makes little sense to disregard a growing segment of the population with increasingly complex financial needs.

What matters most is ensuring that every customer over the age of 55 has their full set of options explored. Anything less is a missed opportunity – for the customer, and for the adviser.