Later life lending is no longer a niche area, but many advisers are still treating it as one, according to James Tucker (pictured), CEO at Twenty7tec.
Tucker said: “Some advisers are still nervous to even bring up later life lending with clients – but this is where advice moves from being helpful to absolutely essential.
“It’s about care, inheritance, and long-term financial security – and if advisers aren’t having these conversations, they’re missing one of the most meaningful advice moments they’ll ever have with a client.
“Ultimately, we’ve got to stop calling it a niche. It’s not a niche anymore. It’s an underserved part of the market that’s only going to grow.”
Homeowners aged 55 and over hold £2.6tn in property wealth, and the Financial Conduct Authority (FCA) has recognised later life lending as a significant and growing part of the mortgage market.
Despite this, fewer than 2% have taken out a lifetime mortgage, a product secured against the home and repaid only after death or moving into care.
Data from Twenty7tec showed that in the first five months of 2025, over-55s accounted for more than 122,000 property purchases, over 215,000 remortgages and more than 33,000 first-time buyer (FTB) cases.
Between 2020 and 2025, the number of mortgage searches for FTBs aged 55 and over rose nearly 50%, while it fell by almost 4% among those under 40, despite overall market growth.
Tucker added: “These numbers are clear evidence that this is no longer a specialist corner of the market, but a major advice opportunity hiding in plain sight.
“But the real issue isn’t availability – it’s advice gaps and a disconnect between consumer and adviser action.
“We’re seeing a clear rise in later life criteria searches across our platform, which tells us there’s growing interest – but it’s still not being matched by adviser action.”
He said: “The demand is there, and brokers need the confidence, tools and triggers to act on it.
“One of the biggest challenges is that some advisers still don’t fully understand the products or feel confident discussing them.
“That’s where education, CRM prompts and segmentation come into play.”
Jonathan Thirkill, founder at Advise Wise, said: “We’re seeing more advisers engage with later life lending, but confidence is still the missing link.
“Our partnership with Twenty7tec isn’t just about product access; it’s about equipping advisers with the education and support they need to spot client needs early and have more meaningful conversations.”
Later life lending is now more flexible, with no negative equity guarantees, tenure for life, optional repayments of up to 40%, and fixed or capped interest rates for life.
However, the data showed that it remains misunderstood or dismissed by many advisers.
At the same time, 31% of FTBs relied on family support for deposits and more borrowers are extending mortgage terms into retirement.
Tucker said: “Later life lending is exactly the kind of area where segmentation and CRM should shine.
“It should automatically surface life-stage opportunities – that’s where the tech needs to go, and exactly what we’re working towards with our Connect system.
“It’s not just about recording what’s been done. It’s about prompting what needs to happen next.
“Advisers need to reach clients before they ask the question – and that means moving beyond CRM as admin.”
He added: “It’s about using behavioural cues, product triggers and life-stage data to truly understand your client and start the conversations that matter.
“They don’t need more products – they need better ways to know when to have the right conversation. And that starts with understanding not just the data – but the human behind it.”
