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Brokers - what is your approach with later life clients?

Journalist: John Fitzsimons, Freelance

ended 13. February 2024

Morning brokers

This week Key launched a new service, aimed at mainstream advisers who might not normally do much in the later life arena (https://www.mortgagesolutions.co.uk/news/2024/02/12/key-launches-later-life-service-for-mainstream-advisers/)

I'd love to get your take on your own approach to later life clients. 

Do you handle it all yourself, or do you go down the referral route? If the latter, how do you go about picking the right partner?

How important is it for brokers to have proper plans in place for supporting older clients? Has Consumer Duty made any difference here?

And what advice would you have for fellow advisers who are trying to work out the best option for their own firms?

Thanks so much!

 

6 responses from the Newspage community

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Editor
Simon Bridgland
Director at Charwin Private Clients
Multiple reasons should be found when giving a recommendation, selecting between a traditional mortgage or a later life option is not necessarily an obvious choice so unless you are an expert giving advice across both, referals should be made.

I am able to offer clients the full choice of mortgage pathways across both traditional and later life options. I would only refer to another broker if it were not my specialism, such as home reversion schemes.

My need for referal is greatly reduced as I opted to complete further study and gain valuable experience in the later life sector. This means that more of my time can be spent on cases of a more complex nature or simply where more time is needed to guide a client.

Robust support plans for brokers to follow when dealing with later life needs are a must especially with the focus of Consumer Duty, you only get one chance, so it must handled carefully. Brokers should form solid relationships with later life advisers they can reach on tap.
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Darryl Dhoffer
Founder at The Mortgage Geezer
For later life borrowers, you need to consider your expertise, comfort level, and regulatory obligations. Collaborating with qualified equity release specialists through referrals can ensure clients receive appropriate advice. Having a holistic approach to finances and being qualified to offer advice for later life borrowers, is a must for today's mortgage advisors. When supporting older borrowers we are sensitive to their vulnerabilities and communication needs. Offer clear explanations, tailored options, and ongoing support throughout the process.
Advice i can give fellow advisors is to conduct thorough research, understand regulations, and prioritize client suitability. Consider partnering with specialists if needed and seek guidance from professional bodies and regulatory authorities.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
I have always worked with specialists in this area, that I can refer clients to as and when I come accross people I feel could benefit from that type of lending. That works for me as I don't see enough of this type of cleint to maintain the product knowledge and lending contacts to effectivly advise in that area myself, and it allows me to conventrate my efforts in the areas where I can deliver the most value to my clients. It's exactly the same process as I use for other areas such as commercial lending, pensions, or investment enquiries.
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Robert Timm
Managing Director at Sunland Mortgages
For the traditional equity release type clients, I'll refer to a referral partner, someone I've worked with a lot over the years and trust that they'll provide the same level of service I would.

However, there has been an increase in 'later life' clients who don't fit into the equity release box, and I've done lots of research over the last 18 months in order to be confident to take these clients on myself. They don't come up every day, but when they do I feel confident enough to approach a number of lenders (Hodge, Livemore, Family Building Society) to see if a proposal might fit. Generally the time invested on these cases is greater than a typical residential or buy to let mortgage, but the reward in terms of proc fees and also client satisfaction is, in my opinion, worth it, but only do this if you have confidence in process and lenders.

As with anything in the industry, more competition and options is good for broker and consumer.
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Rowan Frayling
Managing Director at J Finance
Several years ago we decided to become the experts in this field, and as such, work with a number of Mortgage Advisers, Financial Advisers, Solicitors and so on, to help their clients with their later life needs.

These advisers often spot an opportunity where perhaps they cannot help with a conventional mortgage and refer the client to us for advice; we specialise in Equity Release, Retirement Interest Only and more and can often find solutions for these clients.

We find this works well for the partners we work with, they can refer their client with confidence and we become a trusted part of their business and their process.
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Steven Morris
Advising Director at Advantage Financial Solutions
Any later life lending should ensure that RIO, ER, term interest only and repayment should be considered whether or not that is done in house or part of it outsourced, with the relative availability, costs, pros and cons and reasons for option proceeded with noted clearly. That should have always been the case but you only have to look at how much the big boy equity release firms have had to change since consumer duty to gauge it's impact. The biggest risk to a later life borrower is our own market order-taking and the changes seen across the market in processes highlight just how much of it was probably going on. How many clients ended up with equity release just because they spoke to an equity release adviser initially? Or a RIO mortgage because their adviser didn't do ER? I dread to think. Partially outsourced or done in house, always cover every base, discuss in detail, record it and get a signed letter from the client confirming.