more2life has called on the Financial Conduct Authority (FCA) to follow through on proposals in its Mortgage Market Discussion Paper (DP25/2) and remove regulatory hurdles that it says is preventing older homeowners from accessing the full range of mortgage options.
In a detailed response to the consultation, more2life welcomed the FCA’s recognition of later life lending as a key part of the mortgage market’s future but warned that “recognition is only the first step. The next is action.”
The lender argued that millions of people over-55 risk missing out on products that could improve financial resilience, fund home adaptations or help family members unless rules change.
more2life highlighted five reforms it believes are essential.
These include merging mainstream and later life advice rules so all over-55 borrowers automatically receive holistic advice; incorporating the current specialist lifetime mortgage qualification (CeRER) into the standard CeMAP exam to create a single benchmark; issuing clear regulatory guidance to remove the perception that lifetime mortgages are a “last resort”; mandating disclosure so every borrower is told about later life solutions at key stages; and supporting innovation so hybrid and flexible products can reach more people.
The lender pointed to existing innovations such as drawdown lifetime mortgages, Interest Reward discounts, downsizing protection and intergenerational support.
Dave Harris, CEO at more2life, said: “Lifetime mortgages are not a product of last resort. They are helping customers repay debt, stay in their homes, adapt their properties, and support their children and grandchildren.
“They are also creating broader benefits; as we state, our lending alone has generated an estimated £11bn wider economic impact in just five years.
“Imagine the difference if every older borrower had the chance to consider these solutions as part of a normal advice journey.”
He added: “The FCA has asked the right questions. Now we need it to deliver the right answers: one advice journey, consistent qualifications, mandatory disclosure of later life options, and clear guidance that gives advisers the confidence to act.
“We are ready to play our part, but the framework has to evolve if later life lending is to achieve its full potential.”
