“For years, equity release and later life lending have been considered niche elements of the mortgage market best left to a handful of specialist lenders – but this is changing. There are an increasing number of lenders and institutions, both originating and funding later life products, often lending to people up to age ninety plus.

The reason? The opportunity is undeniable. People are living longer, retiring later, and doing so with far less financial certainty than previous generations. Defined benefit pensions have become rare, the pensions adequacy gap is widening and the pressure on living standards in retirement is intensifying. That creates a clear, if uncomfortable, truth: for many, maintaining a reasonable standard of living in later life will require accessing housing wealth. And more lenders are taking note.

Housing has become the largest asset many people will ever own. In the UK, most households approaching retirement hold more wealth in their home than in their pension. Research by the Equity Release Council found by 2040 as many as 51% of households over 60 could benefit from later life lending to support living standards, unlocking up to £23bn a year in today’s terms.

Downsizing is often presented as a solution – but the numbers simply do not stack up. Only around 14% of over-55s say they would consider downsizing.  Many do not want to move into purpose-built retirement properties while in good health, even were there enough suitable properties.

For those who do want downsize, the right homes often don’t exist in the right places. This is reflected in the fact that around 50% of all equity release loans fund home improvements.

So, the need for growth in the over 50’s lending market is there; but how do we create more demand when the underlying demand is already there?

If mass volume is to be achieved, the further involvement of recognised major mortgage brands, be they banks or building societies, will help normalise later life products, signalling safety, legitimacy and trust. All required for later life lending to be successful and the market to grow to levels required. However, recognising the need is one thing; being able to act on it, another. Many lenders require support, funding and technology to expertly execute and service any new lending of this type.

The Association of Mortgage Intermediaries (AMI) and the Equity Release Council (ERC) have forged a unified approach to promote later life lending as acceptable as other mainstream mortgages which is a hugely positive step. When you see Mortgage Advice Bureau (MAB) has launched a significant later life lending presence by recruiting industry experts, acquiring UK Moneyman and integrating with equity release sourcing technologies from Livemore Mortgages, this indicate the market is ready to expand, and probably at pace.

Of course, any market growth must be managed responsibly. Greater competition and diversity of providers will unlock more flexible, tailored products, while keeping the essence of what has worked well to date. This may require lenders to have different, more flexible, agile systems and partners, especially where this is a different sector for a lender.

Equity release and later life lending are advised sales, with strong consumer protections. Good advisers have genuinely holistic conversations that consider residential mortgages, RIOs and lifetime mortgages as well as equity release. Complaint levels remain low and it is vital that these high standards remain when more choice becomes available.

Ultimately, maintaining living standards in retirement is one of the defining economic challenges of our time. Later life lending may be seen as niche but needs to be taken seriously market wide to fulfil the potential.

Housing wealth can help bridge the gap for many people while helping banks and building societies to both survive and thrive in an increasingly challenging world – but only if the industry builds momentum now.”