More2life has welcomed the Financial Conduct Authority’s recognition of later life lending as a central part of the UK’s mortgage market but warned that genuine progress depends on removing outdated regulatory barriers.
In its response to the FCA’s Mortgage Market Discussion Paper (DP25/2), the specialist lender said that while Chapter 3 of the paper could be a landmark moment for the sector, the regulator must now move from consultation to reform.
Without change, it warned, millions of homeowners approaching retirement risk being left without access to solutions that could improve their financial resilience and living standards.
REGULATORY REFORM
The lender highlighted five areas requiring action: merging mainstream and later life advice rules to ensure all borrowers over 55 receive holistic guidance; absorbing the later life CERER qualification into the standard CeMAP exam; issuing clear good and poor practice guidance; mandating disclosure of later life options at key points in the mortgage journey; and removing barriers to innovation, particularly around hybrid and flexible products.
More2life said its own innovations were already benefiting customers, with 40% of lending through drawdown lifetime mortgages and products such as Interest Reward, downsizing protection and voluntary repayment options providing flexibility.
Intergenerational lending is also on the rise, with many customers using lifetime mortgages to help family members onto the housing ladder.
The lender’s ProView platform, which provides upfront underwriting and property insight, has achieved a 90% application-to-offer conversion rate compared with 58% for standard cases.
Over the past five years, more2life estimates its lending has generated £11bn in wider economic benefit, with housing wealth being used to repay debt, fund care, adapt homes and support relatives.
CALL FOR ACTION
Dave Harris, chief executive of more2life, said: “The FCA’s Discussion Paper, and the specific chapter on later life lending, is a recognition of how important it has become, but recognition is only the first step. The next is action.
“Older borrowers need advice that reflects their full range of options, not advice determined by whether their adviser happens to hold a separate qualification.
“Our experience shows that when customers are made aware of lifetime mortgages, the outcomes are overwhelmingly positive. These solutions are already here. What is missing is the regulatory framework to ensure more people can access them.”
He added that lifetime mortgages should not be seen as a last resort but as a way to help customers stay in their homes, repay debt and provide financial support to younger generations, while also delivering wider economic benefits.
Harris concluded: “The FCA has asked the right questions. Now we need it to deliver the right answers: one advice journey, consistent qualifications, mandatory disclosure of later life options, and clear guidance that gives advisers the confidence to act.
“We are ready to play our part, but the framework has to evolve if later life lending is to achieve its full potential.”
