Research from later life lending platform Air found that 83% of wealth and general advisers had knowledge of the new kinds of products launched by lenders, such as options that allow borrowers to service interest.
Some 47% said they knew of the newer products including higher-loan-to-value (LTV) limits, shorter and fixed early redemption charges and increased flexibility around regular payment options enabling customers to repay interest and capital or both.
A further 42% were aware of term interest-only mortgages, while 40% had knowledge of payment term lifetime mortgages. Two-fifths of respondents also knew of interest reward lifetime mortgages.
Adviser confidence when recommending innovative products
Of the advisers who knew of the innovation in the market, 73% said they had not yet recommended products to clients, indicating a need for support when dealing with the options available.
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Air said advisers should make more use of the technology and research tools available, such as its own Navigator platform and the LiveMore Mortgage Matcher.
Just 44% of advisers said they were confident they had the skills and expertise to advise clients about the products available, and 37% said they were quite confident.
Some 18% said they only felt equipped to advise clients on standard lifetime mortgages but not the newer options.
Will Hale, CEO of Air, said: “Product innovation, not only in the lifetime mortgage sector but also in terms of retirement interest-only mortgages, term interest-only mortgages and long-term fixed rate products, has created a complex landscape for mainstream mortgage advisers and later life lending specialists alike.
“Help is on hand through the sourcing and research tools available and with the professional development resources and support provided by lenders and through networks and mortgage clubs.”
Hale added: “Creating better outcomes for customers requires advisers across the market to engage with these services, and also to put in place referral arrangements with trusted specialists if they do not want to expand their proposition but still be able to ensure that all options are offered to clients.”
