By talking to fellow real estate agents and listening in on some phone calls, I experienced this later in life
Lending is discussed in conversations with brokers, but can often be framed far too narrowly. The discussion
The question quickly becomes whether a lifetime mortgage is suitable, rather than whether there is access to it
Housing wealth makes sense first and foremost, and even if it does, how that fits into everything
what else is going on in that client’s life.
Recent research by Air, “The home belongs in the plan”, puts much of this into words
We already see in practice that older clients rarely have to deal with one-dimensionality
decisions.
The over-55s we meet don’t just ask how they can raise money. They try to find a balance
competing pressures, such as helping children onto the property ladder and protecting their pensions
income, planning care, managing estate taxes, or simply continuing to live in the home they love
without feeling financially trapped.
In many cases, their home is their largest asset, yet it is the home that can be the most uncomfortable
them to talk about. Pensions and investments are usually reviewed on a routine basis. Ownership often sits
on the sidelines until the conversation becomes urgent.
The research shows how often this occurs and illustrates what we stand for. As a tax
thresholds remain frozen and more and more assets are subject to inheritance tax, but nothing is done with them
Home equity is becoming less and less of a neutral choice than it once was.
Lifetime mortgages definitely have a place. I’m not anti-product, but I still think there is a risk
when late-life lending is treated as a product problem rather than a planning problem. That could be a company
very good at arranging lifetime mortgages and still not equipped to answer some of the questions
more difficult questions where older borrowers need help.
Questions like:
Should the house be used at all?
What are the alternatives and what are we giving up by choosing this route?
How does this impact income, flexibility and legacy over time?
Who else in the family needs to understand this decision?
Air makes it clear that good later life advice is not about “selling later life loans” but about
explain trade-offs clearly and test whether there is a benefit, whether financial or emotional
really worth the cost. These are very different skills than product placement.
I didn’t think that many regular mortgage brokers were set up at that level
later life planning, and I don’t think they should feel pressured to do so. In fact, I would argue so
referral is often the most client-oriented option.
Referring a borrower later in life to a real specialist does not mean that the client is extradited
take a step back. Done right, it keeps the agent firmly at the center of the relationship.
whilst ensuring the client receives advice that truly reflects the complexity of their situation.
For me the key is who you refer to. There is a big difference between a company that happens to do that
lifetime mortgages and a mortgage specialized for older borrowers as a cohort. The latter will
typically spend more time on goals, alternatives, and family involvement, and so on
Consumer Duty expects us to take this seriously.
The research also shows that referral can work commercially without disrupting behavior.
provided that it falls within a clear, duty-oriented framework. This is all correct, but it should be
always subordinate to ‘doing the right thing’.
Consumer Duty has sharpened my thinking on this. Do not take the home into account at all, or reduce it
the conversation about one product increasingly feels like a risk for both customers and advisors.
Older borrowers make decisions with long tails. The consequences may not be visible
years, but when they do, they are extremely important. Hence Air’s argument that damage can occur
both by omission and by action resonates so strongly with me.
It feels like you have a trusted referral path to a specialist who understands later life in the round
one of the most practical ways for real estate agents to meet that standard without going too far.
The key message here is to encourage better conversations, earlier, and make sure you get the right stuff right
Expertise is needed when the stakes are high. Later-life borrowers need clarity, context, and…
to trust. This comes from working with a specialist who understands aging, family and family situations
financing, not just lifetime mortgages.
As Air’s research shows, the house is part of the plan. My opinion is that the right specialist
is also part of the conversation.
Malcolm Davidson is director of UK Moneyman