Later life lending opportunities
Expand your mortgage advice offering with later life lending
The FCA's discussion paper "Mortgage Rule Review: The Future of the Mortgage Market" highlights the risk of mortgage advisers and wealth managers being unable to meet the needs of future generations of mortgage borrowers.
Mortgage terms are increasing to 30 and 35-year terms, with first-time buyers, now aged 34 on average, responding to higher interest rates amid rising monthly costs. In addition, it's currently estimated that 38% of the working age population (12.5 million people) are under saving for retirement, highlighting the growing importance of advice on financial options beyond retirement.
The later life lending opportunity
The need for holistic advice is growing with more people seeking financial support and borrowing options in later life, a trend which is further supported by the FCA's call for later life products to be an integrated part of financial advice.
Sources: Equity Release Council | ERC Press | UK Finance
What later life lending products are there?
Later life lending through products like lifetime mortgages (also known as an equity release mortgage), need to be a core part of advice and no longer a niche. Even a basic understanding helps you serve over-55s, particularly clients who don't meet affordability checks.
A long-term loan secured on the home, typically with rolled-up interest, giving the client tax-free cash. The equity release loan plus interest that compounds over time is repaid when the client dies or goes into long-term care.
Use example: Clients can raise funds without mandatory repayments and continue to own their property. Typically used to pay off an interest-only mortgage, repay debt, or for home improvements.
The later life borrower
Lifetime mortgages are currently the biggest later life product on the market (UK Finance). Our customer data shows the average age of a later life borrower for lifetime mortgages is 69, with an average property value of £404,000. A lifetime mortgage allows clients to access tax-free cash that's tied up in their homes to:
- Top-up their retirement income
- Pay off an existing mortgage or other debts
- Fund home improvement projects
- Fund care in later life, or make modifications to their home
- Gift to children or grandchildren to enter on the property ladder
- Release funds to buy a new property
Learn more about later life borrowers in our understanding your customer academy >
How to become an introducer broker for equity release
Equity release advice is FCA-regulated, and you can complete the qualifications to become an equity release adviser on top of your existing mortgage advice qualifications, or you can become an introducer broker. You'll need an introducer agreement defining your referral terms, and suitable clients to get started.
Commission: Introducers typically receive around 30–40% of the procuration fee. For most completed cases, this equates to roughly £500–£2,000 per referral, depending on the advisory firm and loan size, while others offer a fixed rate. This can serve as a reliable source of passive income.
Which mortgage brokers are eligible to be introducers?
FCA-authorised mortgage advisers, who can identify potential client needs, gain their consent and make the referral. Please note, if you're in an introducer agreement, you abide by the FCA boundary and do not give equity release advice yourself.
Frequently asked questions on introducer referrals
How to become an equity release adviser
Mortgage advisers can qualify to advise on equity release, by gaining the Certificate in Regulated Equity Release (CeRER) qualification. This is in addition to your existing CeMAP (Certificate in Mortgage Advice) or equivalent Level 3 mortgage advice qualification.
Equity release qualifications
You'll need to choose one of the FCA-recognised courses* that cover product knowledge, regulation, client needs and compliance. On average, these courses can be completed in a few weeks.
- CeRER – Certificate in Regulated Equity Release (via LIBF)
- ER1 (typically alongside CF6) – Equity Release module (via CII)
*Disclaimer: We do not endorse or recommend any specific qualification providers. All references are for informational purposes only.
Useful guides
Step-by-step overview
Sourcing platform Advise Wise has created a six-step guide on how to become a qualified equity release adviser.
View guide
Equity release standards
Explore the official Equity Release Council Standards on trusted, transparent, tailored, and thorough advice.
View standards
Compliance insight
Find more detail on adviser training that covers compliance, advice process, and the later life lending market.
View trainingStart your journey in later life lending
Learn more about lifetime mortgages and how these later life lending products assist your clients in achieving their financial goals and objectives.