LiveMore has called on the financial services industry to agree to a clear definition of ‘later life lending’.
The lender said the market needed to move away from seeing later life lending as just another term for equity release.
Leon Diamond, founder and CEO at LiveMore, said: “Equity release has dominated the narrative for too long. Later life lending is not one product.
“It’s about understanding people’s full financial picture starting in their fifties whilst earning, but also as they move into and through retirement.
“That means recognising pension assets, annuity income, savings, investments and other income streams as part of the affordability puzzle.
“Without a clear definition, consumers and advisers are being short-changed.”
LiveMore added that later life lending should include a range of mortgage products, not just equity release.
This includes retirement interest-only mortgages, capital and interest repayment options, and standard interest-only products.
Diamond added: “We’re not saying equity release doesn’t have a place. We’re saying it’s just one tool, not the whole toolkit.
“Older borrowers deserve a lending landscape that reflects their real lives, not outdated assumptions.”
Furthermore, LiveMore wants the industry to adopt clearer language and work together to support consumers, brokers, lenders and regulators.
The lender has called for an open forum with lenders, brokers, trade bodies and regulators to define the category and improve standards.
Diamond said: “Let’s move from confusion to clarity. Let’s redefine later life lending – not as a euphemism for equity release, but as a diverse, future-focused category in its own right.”
