Advisers are increasingly aware of product innovation in the later life lending market, but many feel they lack the confidence and tools to fully support their clients, according to new research from Air.
The nationwide study from the later life lending platform, which surveyed over-50s specialists, wealth advisers, and general mortgage advisers, found that 83% of advisers are aware of the new products and features being launched by lenders.
GROWING AWARENESS OF PRODUCT INNOVATION
47% of advisers say they are very aware of recent product developments, which include:
- Higher loan-to-value (LTV) options
- Shorter and fixed early redemption charges
- More flexible repayment structures, allowing borrowers to repay interest, capital, or both
The survey also revealed that:
- 42% of advisers are aware of term interest-only mortgages
- 40% are familiar with payment-term lifetime mortgages
- 40% know about interest reward lifetime mortgages
However, despite growing awareness, many advisers are not yet incorporating these products into their recommendations. 73% who say they understand the latest product innovations have yet to suggest them to any clients.
ADVISERS URGED TO USE AVAILABLE TECHNOLOGY
Air is calling on advisers to embrace technology and research tools to help them navigate the increasingly complex later life lending market. Solutions such as Air’s Navigator, which analyses a client’s income, expenditure, and preferences, can help advisers determine which products their clients may be eligible for. Other tools, such as LiveMore’s Mortgage Matcher, allow advisers to compare products efficiently.
CONFIDENCE REMAINS MIXED
The study also examined adviser confidence levels in navigating later life lending. Less than half (44%) of those surveyed said they are very confident in their ability to advise on the full range of later life products.
Meanwhile, 37% feel only somewhat confident in their skills, while 18% said they only feel comfortable advising on standard lifetime mortgages, not newer, more complex options.
CALL FOR GREATER ADVISER ENGAGEMENT
Will Hale, CEO at Air, emphasised the importance of adviser engagement with available tools and professional development resources:
He said: “Product innovation, not only in the lifetime mortgage sector but also in terms of retirement interest-only mortgages, term interest-only mortgages, and long-term fixed rate products, has created a complex landscape for mainstream mortgage advisers and later life lending specialists alike.
“Help is on hand through the sourcing and research tools available and with the professional development resources and support provided by lenders and through networks and mortgage clubs.
“Creating better outcomes for customers requires advisers across the market to engage with these services and also to put in place referral arrangements with trusted specialists if they do not want to expand their proposition but still be able to ensure that all options are offered to clients.”
