Mortgage advisers failing over-50s on later life lending

March 19, 2025

2 minutes read

Mortgage advisers are failing the over-50s on later life lending by not making them aware of all their options, Key Later Life Finance has argued.

The equity release adviser suggested mortgage advisers are missing out on a “huge opportunity” to grow their business and deliver better customer outcomes under consumer duty rules.

This follows Bank of England figures which showed that more than two out of five mortgages now run past retirement age.

While Key argued this finding highlighted the need for a new approach from mortgage advisers, it warned too many are ignoring options for customers in the later life lending market.

Key Advice CEO, Will Hale, said: “All advisers have an obligation to consider all later life lending options for over-50s customers under consumer duty but too few are doing that and therefore failing their customers.

“Too many focus on their own area of expertise and do not think more widely.

“There is a huge opportunity for mortgage advisers to grow their businesses and improve their customers’ lives by focusing more on this sector and ensuring they stay abreast of all the product innovation taking place.

“Technology can help with tools such as Air’s Navigator or LiveMore’s Mortgage Matcher offering efficient ways of comparing products and supporting advisers in evidencing the consideration of all options.

“Having trusted referral arrangements in place is then critical to ensuring that a customer can access all products that may deliver the best outcome for them with as little friction as possible.”

Key cautioned that borrowers are often not helping themselves as many worry they will not be accepted for new loans due to insufficient incomes causing them to not engage with advice.

However, Key argued the onus is on advisers to engage more proactively with their older customers and properly research the wider range of options in the later life lending market.

“This is consistent with obligations under consumer duty and with wording in the recent FCA Dear CEO letter to mortgage intermediaries which stated ‘we want to see firms do more to ensure customers have considered their options’,” the advisory firm said.

Although Key clarified that its primary call was for mainstream advisers to fully embrace the opportunities in the later life market, it added that many so-called ‘specialists’ also need to “up their game”.