Full Breakdown
Reforming Later Life Lending: More2life's Call for Change
9/26/2025, 10:30:05 PM
Core Event: Regulatory Reform in Later Life Lending
More2life, a prominent later life lender, has urged for significant reforms in the UK mortgage market to enhance accessibility for older borrowers. In response to the Financial Conduct Authority’s (FCA) Mortgage Rule Review (MRR) Discussion Paper, More2life emphasized the necessity of removing regulatory barriers that currently hinder the growth of later life lending.
Background & Context: The Need for Change
The FCA's MRR Discussion Paper highlighted the importance of integrating later life lending into the core of the mortgage market. More2life welcomed this recognition but insisted that concrete actions must follow. The lender pointed out that the existing separation between mainstream and later life mortgage advice limits consumer awareness and access to options, which they deemed "unacceptable."
Key Proposals for Reform
More2life proposed several key reforms to improve the later life lending landscape:
1. Unified Adviser Qualifications: The lender suggested that qualifications for advisers should be standardized to ensure all borrowers aged 55 and over receive comprehensive advice, regardless of the adviser’s specialty.
2. Mandatory Disclosure Requirements: More2life called for clear guidelines to inform borrowers about their options at the end of a mortgage term, aiming to reduce stigma around lifetime mortgages.
3. Encouragement of Product Innovation: The lender advocated for regulatory changes that would promote hybrid and flexible lending products, which could better meet the needs of older borrowers.
4. Holistic Advice Framework: More2life emphasized the need for a single advice journey that encompasses all options available to older borrowers, rather than limiting them based on adviser qualifications.
Criticism & Opposition: Concerns Over Regulatory Risk
Despite the push for reform, More2life acknowledged that consumer awareness remains low, and adviser participation in later life lending needs improvement. Dave Harris, CEO of More2life, expressed concerns about the high perceptions of regulatory risk that deter advisers from engaging with these products. He stated, “When customers are made aware of lifetime mortgages, the outcomes are overwhelmingly positive,” underscoring the potential benefits of these financial solutions.
Official Statements & Responses
In his remarks, Harris noted the FCA's recognition of the importance of later life lending but stressed that “recognition is only the first step. The next is action.” He called for a regulatory framework that allows older borrowers to consider lifetime mortgages as a standard option rather than a last resort. Harris concluded, “We are ready to play our part, but the framework has to evolve if later life lending is to achieve its full potential.”
What's Next: Consultation and Implementation
The FCA is expected to consider the feedback from More2life and other stakeholders as it moves forward with the MRR. The proposed reforms aim to create a more inclusive and innovative environment for later life lending, ultimately benefiting older borrowers and enhancing their financial resilience.
In summary, More2life's advocacy for regulatory reform highlights the urgent need to modernize the later life lending sector, ensuring that older borrowers have access to a full range of financial options tailored to their needs.
