Let’s raise the bar for the lifetime mortgages sector

The sector needs collaboration in order to help further raise the bar, and we believe the time is right for the Council of Mortgage Lenders, the ERC and the Financial Conduct Authority to join forces in order to ensure a stable and professional lifetime lending market. The FCA has already proposed changes to the equity release qualification in order to drive more advisers into this space and support the surge we expect to see in the coming years, but there is still much more that can be done.

This market has evolved from being somewhat niche into a specialist advice market and this provides us with the foundations to now build on and to take later life lending to the next level and beyond. In order to achieve this, we would like to see the FCA and trade bodies do more to raise awareness of this market and to highlight the recent product innovations that have already taken place and which will continue as more diverse funding comes into the market.

Along with the regulator and trade bodies, lenders also need to unite and work collaboratively, rather than as individual firms, and partner with specialist advice firms in order to better promote solutions to customers as they approach, enter and move through their full or partial retirement.

With new funding coming into the market to help fuel growth and drive product innovation, we are currently at an important crossroads. In order to make the most of this opportunity, we will need to see greater collaboration between all parties in order to modernise the industry’s standards and cement its reputation for consistency and professionalism.

The lifetime mortgages market is currently on the cusp of a major breakthrough, with more lenders entering the market space than ever before. However, all eyes must now turn to the regulator and trade bodies, as it is these groups who need to think carefully about the vital role they can play to help improve this important industry.