FCA’s targeted support initiative missing later life lending options – Key

The FCA’s targeted support initiative has missed out on the potential to include later life lending to help deliver good customer outcomes for over-55 homeowners, according to Key Partnerships.

The referral arm of Key Group said that targeted support is a “fantastic opportunity” to close the UK’s advice gap by bridging the space between generic guidance and individualised advice.

However, the group warned that currently, the change does not include later life lending options despite there being many older customers in the UK who could benefit who may have substantial property wealth but little in the way of savings and investments.

Key Partnerships has urged firms which offer targeted support propositions to signpost customers into specialist advisers who can assess whether modern lifetime mortgages can form part of their financial planning and ensure good outcomes.

“In order to ensure good outcomes for customers, the home has to be included in retirement planning conversations, but the scope of targeted support does not currently include later life lending options,” Key Partnerships director, Damon O’Connell, commented.

“However, firms that offer targeted support propositions should signpost customers to specialist advisers who can assess whether products such as modern lifetime mortgages can be used as part of retirement planning conversations.

“Later life lending products are increasingly relevant to all over-55s homeowners and can support needs such as more efficient management of existing debt, a boost to retirement income, home improvements to potentially make a property more suitable for later life living and eventually to perhaps help finance care provision in the home.”

---