The Financial Conduct Authority (FCA) has reinforced its commitment to Consumer Duty, making it clear in its latest letter to mortgage advisers that firms must prioritise compliance.

Over the next two years, the regulator will closely examine how advisers are embedding these principles, with a particular emphasis on later-life lending.

Leon Diamond (pictured), CEO and founder of LiveMore, a mortgage lender specialising in borrowers aged 50 to 90+, has welcomed the FCA’s focus on improving standards in this sector. He acknowledges the ongoing challenges for brokers, particularly in delivering holistic, customer-centric advice amid a rapidly evolving market.

NAVIGATING THE COMPLEXITY OF LATER-LIFE LENDING

“Later-life lending is no longer just about equity release,” Diamond explains. “The FCA has highlighted the importance of presenting alternatives, and now there are a variety of mainstream options, including standard capital and interest, standard interest-only, and retirement interest-only (RIO) mortgages.”

At LiveMore alone, there are over 250 later-life mortgage options, reflecting the diverse needs and financial profiles of this customer segment. While greater choice benefits consumers, it also makes the advisory process more intricate.

THE ROLE OF TECHNOLOGY IN CONSUMER DUTY COMPLIANCE

One of the key challenges for brokers is efficiently matching a client’s needs with the most suitable product while ensuring compliance with Consumer Duty requirements. Despite the growing demand for later-life lending solutions, technology has yet to fully address this gap.

To support brokers, LiveMore has developed the LiveMore Mortgage Matcher, an AI-powered tool designed to streamline the mortgage selection process. It analyses more than 250 later-life mortgage products, including standard capital and interest, standard interest-only, RIO, and equity release.

“Our Mortgage Matcher is built to assist brokers in meeting Consumer Duty requirements by ensuring they provide suitable, data-backed advice,” Diamond states. “With regulatory scrutiny increasing, the industry must respond with the right balance of expertise, innovation, and responsibility.”