The lender explained that later life lending as a term has become more common but warns that it is widely and incorrectly seen as a synonym for equity release.
LiveMore said this misunderstanding risks “limiting consumer choice, misguiding advisers and stifling innovation across the market”.
It noted that later life lending should include products beyond equity release, including retirement interest-only (RIO), capital and interest repayment options and standard interest-only deals.
LiveMore said the industry needs to adopt a “more structured and inclusive approach” that empowers consumers with clearer information, equips brokers to deliver holistic advice, encourages lenders to innovate responsibly and confidently and supports regulators upholding Consumer Duty principles on fairness, transparency and suitability.
The firm said rules from the Financial Conduct Authority (FCA) require advisers to consider alternatives to equity release and to look at a wide range of income sources for affordability, but said clearer language and stronger collaboration are crucial for better customer outcomes.
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LiveMore cited an open forum that brings together lenders, brokers, trade bodies and regulators to define the later life lending category and boost standards.
Leon Diamond (pictured), 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 50s 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.”
He continued: “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 Older borrowers deserve a lending landscape that reflects their real lives, not outdated assumptions.
“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.”
The FCA said earlier this week that it would hold a public discussion on the future of the mortgage market in June this year, with one of the topics under consideration being later life lending.
In a speech at the Building Societies Association (BSA) conference in Birmingham, Emad Aladhal, director of retail banking at the FCA, said as term lengths extend and the average borrower gets older, later life lending “is no longer a niche, but increasingly the norm”.
“We all need to face up to the complexities – and opportunities – of increased consumer need to continue borrowing into later life,” he said.
Aladhal said consumers may increasingly need their home to finance retirement and there should be a consideration to make it easier for customers to access this wealth, and this option should be made more attractive and offer greater value.
