Superhero advisers have the power to change lives for the better – Harris

But it’s when you talk to advisers and hear of the real-life cases that you realise just how powerful later life lending products can be, and the difference they make to customers’ lives.

We have had a couple of cases recently, highlighted by our adviser partners, that have stuck with me because of the stories involved. These have been genuine people in need who have seen their lives improve for the better because of the support of an adviser and the innovation of the lenders active in the later life space.

Putting the borrower in control

The first involved a homeowner who was on an interest-only mortgage. Their longer-term plan was to downsize, but the time to do so wasn’t right. Their current property was still the right one for their needs, and the last thing they wanted – or frankly needed – was to go through the upheaval of moving home.

The adviser suggested a Maxi Zero product, since the lack of early repayment charges (ERCs) meant they could sell up whenever it felt right. There was no need to try to fit within a specific timeframe to make a round peg fit into a square hole. Instead, they got the peace of mind of being put back in control, having complete autonomy over when they opted to downsize.

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The customer is also making use of regular repayments in order to offset the impact of interest. They were already used to making repayments towards their interest-only mortgage, and the adviser established they were more than comfortable continuing with making some level of monthly contribution, particularly as it helped them control the overall cost of the funding.

Changing lives

Another case involved someone who initially wasn’t a customer at all. They were acting as a witness for a friend who was taking out a lifetime mortgage, but they were so impressed with the adviser and the range of options available, they asked if the adviser could help them too.

This customer had a long-standing medical condition and absolutely hated their job. The adviser was able to find a solution that delivered the customer an income from their property, allowing them to meet their personal and financial goals.

That’s an outcome that would have seemed beyond the client’s wildest dreams at the outset, yet the adviser was able to help them make a really positive change to their life.

What’s your superpower?

I like to talk about advisers appearing as superheroes to their clients. I think it’s a pretty accurate analogy for the power advisers have, and the difference they can make.

When a customer goes to an adviser, they are usually in the dark about their options. They know they have equity in their home, but they are – understandably – unsure of how they can tap into it to achieve whatever it is they are looking to do, whether that’s paying off an old mortgage, boosting their pension saving, or providing financial support to a loved one.

They trust the adviser will be able to explain all of the various options, the pros and cons, to help them work out the best course of action. That’s why it’s so important for advisers to include affordability in those early discussions, to get a sense of whether the customer can afford to make some sort of repayments from the outset, and benefit from a lower rate in the process.

Rescuing borrowers

If advisers are the ‘Batman’/’Batwoman’ of later life lending, then lenders are the utility belt.

We have to innovate to provide the widest range of options possible, but advisers need to consider all of those options when working with a client.

Advisers have the power to change lives for the better. They can really maximise the impact of that power by asking all of the right questions from the outset.

We have seen so many cases where homeowners have been able to benefit substantially from unlocking their housing wealth, but we are still only just scratching the surface of what this market can achieve.

We need more superheroes, and we need them to really make the most of their powers.