It might feel odd to be talking about a new year, when we’re barely half-way through this one, but the recent FCA Discussion Paper (DP25/2) should have set all our sights firmly on the near future.
The period to respond closes in September, and we should expect new rules to follow. But we also should not sit on our hands in the meantime.
In fact, the smart networks, clubs, advisory firms and individuals are already moving. Because if the direction of travel is clear – and let’s be honest, it is – then now is the time to get later life lending fit for the future. So that when the starting gun does fire, you’re not scrambling to catch up. You’re already leading the pack.
Let’s be clear: this is about creating better outcomes for customers in later life. That’s the prize, and it’s a big one. Fairer Finance’s recent report laid it out in black and white – by 2040, over half of households aged 60-plus are expected to need to tap into their housing wealth to maintain a decent standard of living. That’s around £23 billion a year in released equity.
This isn’t a niche area of the market, it’s a core part of holistic mortgage advice. And the sooner we all acknowledge that, the better.
We’ve already seen what happens when advice gets stuck in silos. Mortgage advisers that don’t touch equity release. Wealth managers that won’t talk about later life lending. Guidance services that ignore the value locked in homes.
It’s outdated, it’s inefficient, and frankly, it’s unfair on the consumer. That’s why the regulator is asking the questions it is – and why we must respond now, not wait for new rules to land. If we know what good looks like, why wait to be told what to do?
INNOVATION GAME
We know that not enough advisers understand the innovation that’s taken place in this space. Do enough customers know they can access a mortgage product where, if they pay some or all of the interest, the rate is discounted? Do enough advisers habitually consider it?
Stats show that many still don’t. And that needs to change. Interest Reward is transformational for the right client, particularly those with interest-only mortgages approaching retirement. But unless it’s routinely part of the advice conversation, the benefit goes unrealised.
This is, of course, about much more than products. It’s about mindset and infrastructure. Can advisers offer truly holistic financial advice to every client over the age of 50? Do they understand the tools and technology available?
Have they explored our own ProView option to provide greater certainty and faster time to completion, Air’s Safer Tracks, repayment flexibility, or product options like Maxi Zero, the first and only lifetime mortgage available without an ERC? Are they connected to the right referral relationships if they’re not fully qualified? If they’re an AR, what is their network offering in this space? If they’re not offering anything, is now the time to move?
This is the checklist every firm should be working through right now, not in a year’s time or whenever new FCA changes might land. Because in 12 months, this part of the market could look very different. The firms that act now will be the ones defining what ‘good’ looks like.
LEADERS
We’ve already got examples of individual firms and networks who are both fully-immersed in this space, and offering their member firms access to what is (and should be) achievable.
But it’s not rocket science. The tools exist, the support exists, and forward-thinking operations are already proving that better outcomes are being delivered when mortgage, wealth, and later life advice come together.
So let’s make it easier for every adviser to become that ‘hero’ in front of their clients. And let’s make it easier for networks to build internal referral hubs. Air can provide tools and training, more2life can offer ProView, product options and wider tech support. The point is action can be taken now. There is nothing stopping us.
CONSUMER DUTY ETHOS
This isn’t just about compliance or meeting future regulation, it’s about delivering on the promise of Consumer Duty. It’s about knowing that if a client walks into your office and says, “I’m 55, I’ve got an interest-only mortgage, and I want to help my kids while still planning for retirement,” you’ve got the confidence, the qualifications, the authorisation, the support, the know-how, understanding and access to be able to say, “Yes, I can help and here are all your options.”
That’s what good looks like. And more importantly, that’s what customers deserve.
So this is a call to action. Get fit for ’26. Whether you’re an adviser, a network head, a distributor owner, a compliance lead, or a marketing director – start now.
Understand the opportunity, get across the tools, and build the right partnerships. Because by this time next year, you’ll want to be able to say with confidence: “Whatever the regulator decides, we’re already there.”
And if we get that right, the future of later life advice won’t just be compliant, it’ll be transformative. For clients, for firms, and for the whole mortgage and wealth sector.
