Nearly two-thirds of brokers say clients still hold outdated beliefs
The Financial Conduct Authority (FCA) is examining how well consumers understand their later life mortgage options as part of a market study due to report initial findings by the end of 2026.
New research from Suffolk Building Society illustrates one of the issues the study is expected to address: brokers report that most older borrowers still misunderstand what is available to them.
https://www.fca.org.uk/publications/market-studies/ms26-1-later-life-mortgages-market-study
The FCA published the Terms of Reference for its Later Life Mortgages Market Study, MS26/1, on March 20, 2026. The review covers consumer understanding, advice quality, product suitability and fair value, along with barriers to access and innovation in the lifetime and retirement interest-only mortgage sectors, and the regulator has since sent Requests for Information to firms and commissioned consumer research ahead of a progress update expected by the end of 2026.
Trade body says advisers' role is growing
https://www.mpamag.com/uk/news/general/fca-to-join-later-life-lending-summit-in-bristol/570225
The Association of Mortgage Intermediaries has been engaging with the FCA on the study since the Terms of Reference were published. Its chief executive, Stephanie Charman, said the involvement gave the trade body an opportunity to influence industry practice as advisers guide clients through increasingly complex later life decisions.
The regulatory review follows continued growth in the wider equity release market, where total lending reached £2.57 billion in 2025, up from £2.3 billion in 2024, an 11% annual increase, according to the Equity Release Council.
Suffolk research illustrates the misconception gap
Suffolk Building Society, which surveyed intermediaries on niche areas of mortgage lending, found that 64% of brokers said older borrowers still assume that all lenders apply age restrictions.
The lender said 60% of brokers had seen an increase in later life enquiries over the past 12 months, against 3% who reported a decline.
57% of brokers said clients believe equity release is their only route into borrowing later in life. 55% said they had worked with clients concerned about securing a long enough mortgage term, while 54% said clients were unaware of the range of ways affordability can be evidenced, including through pensions and investments.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said borrower perceptions have not necessarily kept pace with the innovation seen in the mortgage market.
"Borrower perceptions have not necessarily kept pace with the innovation we've seen in the mortgage market. If many over-55s still assume their age will count against them, then now is the time for brokers to challenge those outdated views and help clients understand the options widely available," said Grimshaw.
Reasons cited for later life borrowing
Brokers cited a range of reasons for clients seeking a mortgage later in life. Reaching the end of an existing mortgage term without being able to repay it in full was the most common driver, cited by 66% of brokers, followed by remortgaging and requests to raise money for family members, such as a gifted deposit, both at 47%.
Other reasons included funding home improvements or consolidating debt, cited by 43% of brokers, and a change in personal circumstances, such as divorce, cited by 31%. Suffolk said half of its own mortgage applications now come from people aged over 55, and Grimshaw said brokers do not need to wait for older clients to rule themselves out before raising later life lending as an option.
"Rather than waiting for older borrowers to rule themselves out, brokers can start the conversation about later life lending, explain how lenders assess retirement income and other assets, and show that being over 55 is not, in itself, a barrier to borrowing," said Grimshaw.
Survey methodology not fully disclosed
Suffolk's press release did not disclose the survey's sample size or fieldwork dates, details commonly included in comparable industry polling. The figures were reported in similar terms across several trade titles this week, none of which carried further methodology detail beyond what Suffolk provided.
Other reporting on the sector notes that four in five advisers surveyed by the Equity Release Council expect further growth in 2026, yet the proportion qualified to advise on later life lending remains small relative to the wider market.
That gap, between rising demand and a limited pool of specialist advisers, sits alongside the consumer misconceptions Suffolk's research describes as a factor the FCA study may need to weigh.
