44% of mortgage advisers are active in the later life market, with equity release and Retirement Interest Only (RIO) advice providing between 10% and 100% of their income, according to a brand new report on the sector from BestAdvice.
The 72-page Later Life Lending report is designed to bring clarity to the sector, to deepen understanding of the propositions available, and help advisers understand which providers operate in which market segments, where their sweet spots are and how their propositions differ.
It also found that 31% of mortgage advisers polled, who are not currently operating in the sector, expect to start writing later life life business within the next 24 months.
Furthermore, 36% of mortgage advisers expect that two years from now the majority of their income will come from later life lending. This compares to 24% today.
Kevin Rose, editor of BestAdvice, and author of the report, said: “Our report aims to give mortgage advisers a clear picture of the key later life lending providers who deliver products to the mortgage intermediary market.
“We aim to bring clarity to the sector, to deepen understanding of the propositions available, and help advisers understand which providers operate in which market segments, where their sweet spots are and how their propositions differ.
“We thank the great majority of providers that supplied us with complete data for their forward-thinking and transparent approach.”
Jim Boyd, chief executive of the Equity Release Council, added: “BestAdvice’s later life lending survey serves as a reminder that industry can often be too focused on products and regulatory silos. This is one of the major areas of complexity for the later life lending market. As different options for customers grow, basic qualifications and understanding for advisers must grow too.
“The Council has been working with other trade associations and awarding bodies to understand how advisers can stay up-to-date in a rapidly growing later life lending space. We want to know what standards and key qualification units are required, as well as the differences in regulatory permissions and oversight.
“It is important the industry supports consumers to take a joined-up approach to later life financial planning, and works with regulators and government to support access to better information, guidance and advice.”
To download a free copy of the report, please click here.