LiveMore, the mortgage lender specialising in products for those aged 50 to 90 and beyond, has called on the wider financial services industry to come together to redefine the meaning of later life lending.
The firm argues that the term, while now in common use, remains poorly understood and too often conflated with equity release. This misunderstanding, it says, risks narrowing consumer choice, confusing advisers and stifling innovation across a growing market segment.
Leon Diamond (pictured), founder and chief executive at LiveMore, said: “Equity release has dominated the narrative for too long. Later life lending is not one product. It’s about understanding people’s full financial picture starting in their fifties whilst earning, but also as they move into and through retirement. That means recognising pension assets, annuity income, savings, investments and other income streams as part of the affordability puzzle. Without a clear definition, consumers and advisers are being short-changed.”
LiveMore wants the industry to adopt a more structured and inclusive approach that properly distinguishes later life lending as a broader category. It includes not only equity release but also products such as retirement interest-only (RIO) mortgages, capital and interest repayment options and standard interest-only loans — all tailored to meet the needs of older borrowers through flexible affordability assessments.
CALL FOR OPEN FORUM
While advisers are already obliged under existing FCA rules to consider alternatives to equity release and to take into account a range of income sources under the Mortgage Conduct of Business (MCOB) rules, LiveMore says that guidance alone is not enough. It believes that a lack of consistent terminology and shared understanding continues to undermine efforts to deliver better outcomes for customers.
The firm is now calling for the creation of an open forum to bring together lenders, brokers, trade associations and regulators with the aim of defining the category and raising standards across the board.
“We’re not saying equity release doesn’t have a place,” said Diamond. “We’re saying it’s just one tool – not the whole toolkit. Older borrowers deserve a lending landscape that reflects their real lives, not outdated assumptions.”
LiveMore believes that such reform is becoming increasingly urgent given the UK’s ageing population and the growing demand for financial products that offer greater flexibility in later life. Without a clear and consistent framework, the firm warns that the market will continue to be hampered by consumer mistrust and patchy advice.
“Let’s move from confusion to clarity,” Diamond added. “Let’s redefine later life lending – not as a euphemism for equity release, but as a diverse, future-focused category in its own right.”
The call from LiveMore reflects a broader industry conversation about how best to serve an older generation of homeowners who are living longer, working later and facing more complex financial needs in retirement than ever before.
