Older borrowers are increasingly tapping into mortgage finance. The latest UK Finance data shows that lending to older borrowers continues to rise, with the value of advances increasing by 3% year on year to £5.2bn in the second quarter of 2025. Lifetime mortgage lending grew even more sharply, up by over 10% in value compared with the same period last year.
These figures are a welcome reminder of the need for advisers to be fully equipped to support this growing demographic.
As borrower needs evolve, advisers must ensure that they are not relying solely on traditional mortgage products or straightforward product transfers. Older clients deserve a rounded service that takes account of all available solutions, including the increasingly sophisticated later life lending products now on the market.
A GROWING AREA OF CLIENT DEMAND
The rise in later life borrowing is perhaps no great surprise. With people living and working for longer, and many facing ongoing cost of living pressures, access to finance in retirement has become a necessity rather than a luxury.
In other cases, the drive to borrow is not because of an immediate need, but rather part of their tax planning. Lifetime mortgages can be a useful tool for limiting the eventual Inheritance Tax bill, for example.
Advisers are seeing clients with a broad range of needs, from refinancing existing borrowing and assisting family members, to boosting their pension income or reducing their tax bills. Each case presents its own challenges, but all require careful, informed advice.
Ensuring that later life lending is considered alongside mainstream mortgage products is therefore an essential part of good client service. Advisers take pride in helping clients make the right financial choices, and that means being confident that every suitable option has been explored.
MEETING REGULATORY EXPECTATIONS
There is also a clear regulatory dimension to this discussion. The Financial Conduct Authority has made it plain that it expects firms to be able to serve older borrowers effectively and to demonstrate that the advice process includes proper consideration of all relevant products.
Later life lending can no longer be treated as a niche area, something that can be largely ignored. Advisers must have a plan in place, whether through securing the necessary permissions to advise on lifetime mortgages directly, or through formal referral partnerships with qualified specialists.
Providing comprehensive advice to older clients is not only an ethical obligation but a regulatory one. The quality of outcomes for this group is under increasing scrutiny, and advisers need to show that they can deliver.
AN EVOLVING MARKET
The later life market has developed significantly in recent years. Lifetime mortgages today are markedly more flexible than those offered in the past, providing advisers with a much broader range of tools to tailor solutions to their clients’ needs.
Modern products offer a variety of features, such as more manageable early repayment charge structures, the option to service interest, and even rate discounts for borrowers who commit to doing so for a defined period. Clients are benefiting from greater control over their borrowing.
At the same time, technology has streamlined the process. Enhanced sourcing systems, digital application platforms and clearer documentation mean that advisers can now research and deliver later life solutions with far greater efficiency and confidence.
THE IMPORTANCE OF ADVICE
All mortgage borrowers rely on professional advice, but for older clients that guidance is particularly vital. Later life lending can be complex, involving considerations that extend beyond the immediate transaction to long-term financial stability and intergenerational planning.
The advice process may take longer, and the emotional as well as financial stakes are often higher. Advisers therefore play a crucial role in helping clients understand their options, make informed decisions, and feel supported throughout the journey.
However, to provide that reassurance and expertise, advisers must have the right training, resources and permissions in place.
BUILDING CAPABILITY
For advisers who do not currently advise on lifetime mortgages, the key question is how best to develop that expertise. Some will choose to partner with established later life specialists, while others will take the step of gaining the appropriate qualifications and authorisation to offer the advice themselves.
Networks can be instrumental in supporting this development. At Rosemount, for example, we have delivered structured training programmes in partnership with Legal & General to help advisers achieve their equity release qualifications.
Advisers need to have the right support structure in place to enable them to provide the level of service that today’s clients – and regulators – demand.
A MARKET THAT CANNOT BE IGNORED
The growth in later life lending is not a passing trend but a structural shift in the mortgage landscape. Clients are living longer, their financial needs are more diverse, and their expectations of professional advice are higher than ever.
Advisers who fail to incorporate later life lending into their service risk falling behind both client expectations and regulatory standards. Those who embrace it will be better placed to deliver for their clients and to secure the long-term sustainability of their own businesses.
