The Later Life Lending Navigator is part of Air Sourcing and will comprise two tools at first.
One tool will look at top level affordability to narrow down the potential product options for borrowers and the other tool will allow advisers to compare the cost of borrowing across different lifetime mortgages. It will compare options with repayments, no repayments, residential and retirement interest-only (RIO) mortgages.
Air will continue to build and develop the tool based on feedback and support from members and partners, with a view to add more product categories as they are launched.
Paul Glynn (pictured), CEO of Air, said: “The later life lending market is evolving, and affordability is becoming an increasingly important consideration for many customers keen to manage their borrowing. Consumer Duty, the proliferation of new and emerging products as well as the higher interest rates, have all pushed this issue to the top of the agenda.
“Air is therefore delighted to launch its Later Life Lending Navigator tool, which it has built with input from members, partners and lenders who are keen to help more formally integrate these important considerations into their advice process. Providing personalised advice which stands the test of time is the aim of every adviser and these tools will help our members to deliver against this ambition.”
Industry backing
Emma Graham, business development director at Hodge, said the lender was “honoured” to have been part of the development of the tool.
She added: “It will help advisers discuss the full suite of options available to customers who can afford to make payments and will complement the tools and products offered as part of our range.”
Will Hale, chief executive at Key, said: “In the context of enhanced expectations post-Consumer Duty and an ever-evolving later life lending market, Air’s Navigator can play a central role in helping advisers demonstrate a field of vision beyond their own specialism and support the delivery of good customer outcomes.
“As we embed the tool into our advice process, being able to quickly assess affordability and other aspects of product eligibility alongside softer preferences can help our advisers have a more rounded discussion with customers about all the options that may be available to them.”
He said being able to illustrate the difference in cost across products would help advisers “probe and challenge” preconceptions borrowers might have and bring a focus to the importance of making repayments.
Hale said: “With older customers suffering as a result of the cost of living crisis and sometimes a sharp increase in mortgage repayments as they come off fixed rate deals, the need for good quality advice centred around affordability has never been more important.”
