If this blog had been written a couple of months ago, I’d probably have opened by asking whether the regulator was truly looking at product innovation within the later life lending sector. Innovation is always high on the agenda but mainly in other, equally important, areas such as first-time buyers, product transfers, or energy efficiency. Now, however, I have to rethink that stance.
The publication of the FCA’s Mortgage Market Discussion Paper (DP25/2) marks a real turning point. Chapter 3 of the paper focuses exclusively on later life lending – not only recognising the challenges faced by older borrowers, but asking directly what kind of product innovation is required to serve a broader and more diverse cohort of later life clients. That’s a first. And it’s welcome. And it’s also an invitation.
As lenders and the wider community, we now have the chance to show the regulator what’s possible. To shape the future of later life lending with real-world, inclusive, forward-looking solutions. And it’s a challenge we at more2life are already stepping up to.
Because the good news is that innovation has already been happening, and not in theory, but in practice. Over the past 12 to 18 months, the later life lending market has moved far beyond basic roll-up structures.
We’ve seen enhanced LTVs, flexi-payment features, hybrid options, and smarter approaches to affordability. At more2life, that journey has led us to the launch this month of Omni – a product designed specifically to expand access and increase flexibility for the kinds of clients advisers are seeing right now.
Omni isn’t about filling a gap in a product matrix. It’s about responding to what advisers are telling us they need: the ability to say ‘yes’ to a wider range of customers. Clients in their late 80s. Clients with unusual properties. Clients who need to release more equity than the average case but who don’t want to jump through unnecessary hoops.
This is practical, real-world lending. Omni offers up to 56.3% LTV, lending up to age 89, 15% voluntary overpayments, and the broadest criteria in our range. It’s not revolutionary for the sake of it; it’s built for purpose.
The regulator’s message is clear within the DP: we need to evolve this market so it works for more people. But we can’t stop at products. Innovation has to extend into the way advisers engage with these solutions too.
That’s where tools like our own ProView come in – a pre-valuation underwriting system that combines human expertise and technology to deliver a significant improvement in case conversion. We have a 90% application to conversion rate on ProView compared to 58% for non-ProView cases, and it’s this focus on driving quality cases quickly through the process, ensuring upfront property suitability, that can make all the difference in terms of time and resource.
It’s a simple proposition: save time, increase certainty, and improve conversion. If advisers are going to be asked to operate across a broader later life landscape, they need support that makes that process smooth, efficient and client-focused. That’s what ProView delivers.
And let’s not forget the bigger picture here. Later life lending is no longer a niche. In fact, it’s hard to think of a more pressing area of the mortgage market. There are 1.8 million fixed-rate mortgages set to mature this year. Many of those borrowers are over 55, and not all of them will be able – or willing – to take on another traditional residential mortgage. The question is: what are they being shown instead?
Too often, the answer is limited. A product transfer. A downsizing conversation. Or worse, an expensive SVR. But with later life borrowing options evolving rapidly, advisers must be ready to discuss all solutions – including lifetime mortgages – from a position of knowledge and confidence.
We’ve just refreshed the more2life brand to reflect this reality: that later life lending is a dynamic, evolving space. That it’s full of potential. That it deserves the same level of innovation, investment, and attention as any other part of the mortgage market. And that when it’s done right, it can transform lives, helping clients to stay in their homes, manage affordability, support their families, and live more comfortably in retirement.
But this isn’t just about us. It’s about the whole ecosystem. Advisers are the gateway. If they aren’t confident, informed and supported, innovation won’t reach the clients who need it most. We need sourcing systems to flag these new product types and to ensure they highlight all the options available to clients in their mortgage journey; we need networks and clubs to encourage qualification and referral; and yes we need the FCA to continue providing the regulatory framework that encourages this innovation to flourish without fear of creating new silos.
That’s one area where DP25/2 appears to have got the tone right. It’s not about prescribing specific products, it’s about encouraging the conditions for change. And it’s where we can all make a difference. Later life lending now has a seat at the table. It’s time we all made it count.
Dave Harris is CEO at later life lender, more2life
