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A lack of knowledge and high interest rates put borrowers off later life mortgages

  • 02/02/2023
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A lack of knowledge and high interest rates put borrowers off later life mortgages
Some 44 per cent of advisers believe a lack of consumer education is preventing people from engaging with the later life lending market, while 59 per cent feel rising interest rates are putting people off.

According to a survey conducted by Air, a further 27 per cent of brokers said the idea that people are meant to pay off their mortgage before they retire was creating a barrier for potential borrowers.

Some 19 per cent said a lack of access to information about the market was limiting access. 


More support needed 

Advisers also called for more support from lenders, with 36 per cent saying the help they did receive allowed them to do their jobs more effectively. Just 12 per cent said lender support did not help them. 

A fifth asked for more training, saying they wanted to build on their knowledge of the market. Some 14 per cent wanted to improve their soft skills while eight per cent wanted to develop better complaint processes and seven per cent sought more insight into lender criteria. 

 Stuart Wilson, chairman of Air Club, said: “With advisers working hard to support customers in a higher interest rate environment, there is plenty of scope for providers in this market to step up. Significant work is going into customer education and to highlight how modern flexible products can be used to manage a customer’s borrowing, but we need to carefully consider what else can be done.  

“Indeed, while it is good news that over a third of advisers say providers help them do their jobs more effectively – and we know the current economic conditions are not easy for lenders – this figure needs to grow. 2023 is likely to be a challenging year for the market but by working together, we can help customers achieve the type of outcomes that the upcoming Consumer Duty legislation demands.” 

He added: “Air is committed to working closely with its ambassadors and growing the academy to help our members to flourish – even in the current uncertain times.”   

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