Key Partnerships has launched a new service for advisers which aims to compare the growing range of later life solutions for customers.
Its navigator tool includes a basic affordability assessment, alongside a consideration of customer preferences and circumstances, to identify potential product options for borrowers.
It also compares the cost of borrowing across lifetime mortgages with repayment and no repayment options as well as C&I mortgages and retirement interest-only (RIO) mortgages.
Being able to illustrate the differences in the cost of borrowing across different product types will give advisers and customers a wider understanding of the benefits of the range of modern later life lending products.
When weighing up options, the cost of borrowing is just one factor that needs to be considered.
Reviewing the levels of protection afforded by the different product types alongside customer circumstances, preferences and capacity for risk will also enable advisers find the right route for their clients.
Chris Bibby, managing director at Key, said: “The later life lending market is at the tipping point of substantial change following the combination of Consumer Duty implementation and the rapid evolution of new types of lifetime mortgages.
“It is more important than ever that mainstream mortgage brokers are aware of the full range of lending options available to over 50s who are looking to borrow into retirement and are ready to have those conversations with customers or refer them to someone who can.”
He added: “Mortgage brokers advising over-50s borrowers need to offer customers the full range of options and establish preferences, whether it is a lifetime mortgages offering repayment options, RIOs or standard residential mortgages.
“Being able to evidence this broad field of vision irrespective of the scope of your advice proposition is an essential part of Consumer Duty.”
“For those that want to advise on the full range of later life mortgage products there is plenty of support from lenders or the likes of Air to help with qualifications, product training, sourcing and other tools.
“However, for others, the support of a trusted referral partner can be the best route to achieve good outcomes for all customers in a commercially optimal way.
“Whichever model advisers choose the later life market is one that cannot be ignored!”
