Later-life comes of age
As the UK population lives longer, many are seeking to make the most of their senior years, meaning the later-life sector could become busier than ever. Mortgage Introducer hears from three key industry experts
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THE LATER-LIFE lending sector looks set to become an increasingly competitive and dynamic marketplace.
With life expectancy rising in the UK over the past forty years and its ageing population seeking to live their lives to the full, this previously under-exploited market offers huge potential.
As the cost of living continues to bite for many, the sector’s leading later-life lenders could find themselves in ever more demand.
Family Building Society, as befitting its name, offers intergenerational lending, with a focus on later-life lending, up to the age of 95.
“Later-life is a huge market, and it’s getting bigger year on year,” says Darren Deacon, Family's head of intermediary sales.
The director of sales at the Preston-based lifetime mortgage
specialists more2life is convinced that the sector’s offerings still offer good value.
“I believe very strongly that today's products offer excellent value,” Les Pick affirms. “Whilst they’re not quite as cheap as they were a year or two ago, because there was an artificial low, if we look back 25 years, I would say that the products still offer good value when product features and flexibilities are taken into account.
“They are unrecognisable from the past, offering more flexibility. Back then, the interest rates would have been broadly seven per cent on average, and now we're seeing interest rates of around 5.5 to six per cent.”
He adds, “Over the years, more2life has done its best to innovate in the market, where possible offering the highest loan-to-values and lowest interest rates we can, consistently. I would like to see lenders continuing to push the boundaries of underwriting criteria, so that we can say yes to more customers, and do so safely.”
Pick says more2life’s customers, who range in age from 55 to their nineties and average around 70, seek solutions to a wide spectrum of challenges.
“Some of them are ‘want’ customers and some of them are ‘need’ customers,” he explains. “It could be that they are struggling with the rising cost of living and their pensions are not keeping pace. It could be that they need an income replacement to maintain their lifestyle, be it a basic or extravagant one.
“Intergenerational gifting is still a big thing, and also seeking support for home and garden improvements.”
"These are what we’d class as mortgage prisoners who have fallen through the cracks. We will consider people in later life who are seeking a buy-to-let mortgage as well, so we've a broad offering for people who are older.”
Based in Epsom, in Surrey, with a staff of 200, Family Building Society prides itself on its personal approach.
“We manually underwrite, meaning bespoke decisions, and we have a human touch. We're not a ‘Computer says no’ type of lender,” Deacon explains. “We offer innovative products and flexible lending.
“A lot of older people don't have any income as such, but they have a pension, and we are one of the few in the market who will help these people. We've got quite a simple formula inasmuch as we'll look at the size of their pension pot, we'll take 80 per cent of that, and then divide it by the term.”
Family Building Society considers its relationship with brokers to be key.
“Brokers are our lifeblood,” Deacon affirms. “Around 95 per cent of our business comes to us via an intermediary, and we’re very invested in them. Later-life is our biggest area of business, and we want to continue to be at the forefront of this. We want to help as many people as we possibly can.”
Family Building Society was launched in 2014, but it originally traded under the name of National Counties Building Society, which had been helping homebuyers since 1896. Its aim is to help families of all generations to achieve their financial goals, whether they’re first-time buyers or last-time buyers. It doesn’t believe in a one-size-fits-all approach to lending, listening instead to each client’s story and working with brokers to find mortgage solutions regardless of their circumstances. Its common-sense approach to underwriting, with no credit scoring, allows it to be flexible, using a borrower’s income, pensions, and investments in the best way possible to improve affordability.
Find out more
more2life has been leading the way in modern retirement lending since launching in 2008, and describes itself as one of the UK’s biggest later-life lenders. By designing flexible lifetime mortgages to meet the changing needs of today's over-55s, it has cemented its name as an innovator in the market, with modern, customer-centric later-life lending features built in as standard across its product range. more2life is focused on helping brokers deliver extraordinary financial outcomes for their clients. It aims to offer the widest range of products and some of the lowest rates and highest LTVs available across flexible drawdown and lump-sum plans.
Find out more
He notes that customers’ expectations are different now from those of previous generations.
“People can be in retirement for a very long time,” Pick reasons. “They want a more fluid retirement, and that could encompass times when they're in and out of employment. The sad thing is that there are potential customers who are living in homes that they can't afford to heat, who could benefit from a lifetime mortgage.
“There needs to be education, not just for consumers, but also advisors and professionals such as solicitors and accountants.”
He observes, “Mortgage brokers looking to get into equity release need to be supported and encouraged by the sector with training, which is something that collectively, I'm proud
Founded on the belief that everyone deserves to enjoy their later years, Pure offers customers market-leading lifetime mortgage solutions with flexibility at their core. It aims to lead on advisor engagement through its partnership with the Equity Release Council, culminating in the launch of the second edition of The Adviser Guide to Equity Release in 2021 and its current involvement in several working groups. Additionally, it was proud to launch MyPure, a new way for customers to manage their lifetime mortgage accounts online including making one-off repayments or applying for a cash release.
Find out more
“Mortgage brokers looking to get into equity release need to be supported and encouraged by the sector with training, which is something that collectively, I’m proud to say, the whole sector is working together on”
Les Pick,
more2life
In Partnership with
“The people who fall into this demographic want to live their lives differently than perhaps previously.
A later-life mortgage helps them do that, like wanting to help their families get on the property ladder.
“The market has previously been underserved, so there's definitely scope to grow it and be more creative. There are more options for people now, so when we say we can lend to an 89-year-old at application and be in a position to offer them a five-year mortgage, they are somewhat surprised."
He continues, “The customers we see are often in their mid-to-late sixties, needing to find a new home for their mortgage. Typically, high-street lenders don’t want to keep those customers – they are not going to extend the term of their mortgage, nor offer them a new product. Effectively they're saying, “We need to see you off our book.”
“Later-life is a huge market, and it’s getting bigger year on year. The people who fall into this demographic want to live their lives differently than perhaps previously.
A later-life mortgage helps them do that”
DARREN DEACON,
FAMILY BUILDING SOCIETY
Industry experts
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Scott Burman
Pure Retirement
Les Pick
more2life
Darren Deacon
Family Building Society
Industry experts
Darren Deacon joined Family Building Society in 2017 as a business development manager covering the Midlands and was promoted to head of intermediary sales in 2022. He has over 34 years of financial services experience and has worked for both high street and specialist lenders. Deacon has worked as an underwriter and mortgage advisor and, latterly, within mortgage business development, and now leads a team of eight BDMs. In his current role, he uses this wide experience and knowledge of the mortgage market to deliver lending solutions for the older borrower. Deacon is a firm believer in providing excellent customer service and thinks it is the best, and perhaps the only, way to build lasting business relationships.
Family Building Society
Darren Deacon
Les Pick is a seasoned financial services professional with 24 years of experience. He started with Royal London and developed a keen interest in equity release. Pick established an IFA practice in Bournemouth and sold it in 2008 to join Equity Release Supermarket. He became national sales manager for The Right Equity Release and later transitioned to manufacturing, winning BDM of the year at the Equity Release Awards in 2016. He moved to Canada Life as head of sales and helped the company become a major player in the equity-release space. Pick joined more2life to use his knowledge to grow the business. He's also an avid cyclist and music lover, and a proud father.
more2life
Les Pick
Scott Burman has a wealth of knowledge and experience in the property and finance industry, having worked in numerous roles with Norwich & Peterborough Building Society, and companies such as Lloyds TSB (as it was then) and Countrywide, working in the B2B division before moving into the mortgage services division as divisional mortgage services director for the Central and Anglia region. Away from work he lives in Suffolk with his wife and two children, who keep him very busy with various clubs and activities at the weekends. He is a follower of the Tractor Boys (Ipswich Town FC).
Pure Retirement
Scott Burman
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Scott Burman
Pure Retirement
Les Pick
more2life
Darren Deacon
Family Building Society
Industry experts
Darren Deacon joined Family Building Society in 2017 as a business development manager covering the Midlands and was promoted to head of intermediary sales in 2022. He has over 34 years of financial services experience and has worked for both high street and specialist lenders. Deacon has worked as an underwriter and mortgage advisor and, latterly, within mortgage business development, and now leads a team of eight BDMs. In his current role, he uses this wide experience and knowledge of the mortgage market to deliver lending solutions for the older borrower. Deacon is a firm believer in providing excellent customer service and thinks it is the best, and perhaps the only, way to build lasting business relationships.
Family Building Society
Darren Deacon
Les Pick is a seasoned financial services professional with 24 years of experience. He started with Royal London and developed a keen interest in equity release. Pick established an IFA practice in Bournemouth and sold it in 2008 to join Equity Release Supermarket. He became national sales manager for The Right Equity Release and later transitioned to manufacturing, winning BDM of the year at the Equity Release Awards in 2016. He moved to Canada Life as head of sales and helped the company become a major player in the equity-release space. Pick joined more2life to use his knowledge to grow the business. He's also an avid cyclist and music lover, and a proud father.
more2life
Les Pick
Scott Burman has a wealth of knowledge and experience in the property and finance industry, having worked in numerous roles with Norwich & Peterborough Building Society, and companies such as Lloyds TSB (as it was then) and Countrywide, working in the B2B division before moving into the mortgage services division as divisional mortgage services director for the Central and Anglia region. Away from work he lives in Suffolk with his wife and two children, who keep him very busy with various clubs and activities at the weekends. He is a follower of the Tractor Boys (Ipswich Town FC).
Pure Retirement
Scott Burman
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Share
Share
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Darren Deacon
Family Building Society
Les Pick
more2life
Scott Burman
Pure Retirement
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Mark HarChristopher Leeon
Scott Burman has a wealth of knowledge and experience in the property and finance industry, having worked in numerous roles with Norwich & Peterborough Building Society, and companies such as Lloyds TSB (as it was then) and Countrywide, working in the B2B division before moving into the mortgage services division as divisional mortgage services director for the Central and Anglia region. Away from work he lives in Suffolk with his wife and two children, who keep him very busy with various clubs and activities at the weekends. He is a follower of the Tractor Boys (Ipswich Town FC).
Pure Retirement
Scott Burman
Les Pick is a seasoned financial services professional with 24 years of experience. He started with Royal London and developed a keen interest in equity release. Pick established an IFA practice in Bournemouth and sold it in 2008 to join Equity Release Supermarket. He became national sales manager for The Right Equity Release and later transitioned to manufacturing, winning BDM of the year at the Equity Release Awards in 2016. He moved to Canada Life as head of sales and helped the company become a major player in the equity-release space. Pick joined more2life to use his knowledge to grow the business. He's also an avid cyclist and music lover, and a proud father.
more2life
Les Pick
Darren Deacon joined Family Building Society in 2017 as a business development manager covering the Midlands and was promoted to head of intermediary sales in 2022. He has over 34 years of financial services experience and has worked for both high street and specialist lenders. Deacon has worked as an underwriter and mortgage advisor and, latterly, within mortgage business development, and now leads a team of eight BDMs. In his current role, he uses this wide experience and knowledge of the mortgage market to deliver lending solutions for the older borrower. Deacon is a firm believer in providing excellent customer service and thinks it is the best, and perhaps the only, way to build lasting business relationships.
Family Building Society
Darren Deacon
PRODUCTS
Published 30 MAY 2023
THE UK’S LATER-LIFE IN NUMBERS
18.6%
Proportion of the total population aged 65 or older (over 11 million people)
Number of people aged 90 or older
5.6%
Proportion of the Borough of Tower Hamlets’ population that is 65 or older—the lowest proportion in the UK
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Copyright © 1996-2023 KM Business Information UK Ltd.
HOW OLD ARE WE?
The number of UK centenarians hit a high of 15,120 in 2020
The sharp increase in those aged 100 resulted from birth patterns a century ago when there was a
spike in births following World War One.
Wales had the highest proportion of male and female centenarians among UK constituent countries.
There were twice as many women aged 90 years and over than men in the UK; however, the gap has narrowed over the
last three decades.
VALUE
“The people who fall into this demographic want to live their lives differently than perhaps previously.
A later-life mortgage helps them do that, like wanting to help their families get on the property ladder.
“The market has previously been underserved, so there's definitely scope to grow it and be more creative. There are more options for people now, so when we say we can lend to an 89-year-old at application and be in a position to offer them a five-year mortgage, they are somewhat surprised."
He continues, “The customers we see are often in their mid-to-late sixties, needing to find a new home for their mortgage. Typically, high-street lenders don’t want to keep those customers – they are not going to extend the term of their mortgage, nor offer them a new product. Effectively they're saying, “We need to see you off our book.”
to say, the whole sector is working together on. We're more than happy to work with any broker firm to grow their business and offer that support.”
Equity release is Pure Retirement’s specialty. The lender distributes its products entirely via mortgage intermediaries and has a loan portfolio valued at £4bn across more than 45,000 customer accounts.
“We can take retirement clients from the age of 55 up to the age of 90 – and the average age is 69 years,” says Scott Burman, head of distribution at the Leeds-based business.
“Typically, in the current market, we’re seeing many needs-based customers with interest-only mortgages to pay. Their deadlines are coming up and they can't quite raise enough funds, so they’re turning to their property wealth – the loan-to-values are a big challenge at the moment.
“We are continuing to work with our funders, existing and new, around product criteria and innovation, loan-to-values, and service.”
The market is challenging, acknowledges Burman, while sounding an optimistic note.
“There are green shoots,” he comments. “Rates have come down and house prices are stabilising.
“The relationship with brokers is vital. The products and the advice process around later-life is more complex, and I think the market is being held back a bit by brokers not being aware enough or interacting with the later-life
“As a lender we will support the broker and customer.… You’ve got to keep moving, and we’ll continue to do that in the drive for great customer outcomes”
Scott Burman,
Pure Retirement
“Customers may also be looking to adapt their homes and carry out essential repairs that would keep them in their properties, and on the flip side there’s still a large need for inheritance tax planning.”
MyPure, an online account-management platform designed to enable customers to self-manage their lifetime mortgages, reflects an increased demand for a digitised service.
“More and more customers want to see more of a digitised journey for their equity-release products,” declares Burman.
“Our approach is very much around engagement. We listen to feedback and adapt our offering, depending on what the customer and broker feedback is. I want us to be known as the easiest and slickest lender to deal with.
market. But that's the challenge we have – working with the Equity Release Council to continue raising awareness of these products. I believe consumer duty will help with that.
“As a lender we will support the broker and customer with knowledgeable people and products that are easy to understand and source. We build up those relationships through visits and webinars, and we're working with networks and clubs, looking at them to raise awareness of this market.”
Burman concludes, “You've got to keep moving, and we'll continue to do that in the drive for great customer outcomes – that's what it's all about.”
527,900
33.5%
Proportion of North Norfolk’s population that is 65 or older—the highest proportion in the UK
Source: Census 2021
Source: National Statistics
of Tower Hamlets’ population that is 65 or older—the lowest proportion in the UK
He notes that customers’ expectations are different now from those of previous generations.
“People can be in retirement for a very long time,” Pick reasons. “They want a more fluid retirement, and that could encompass times when they're in and out of employment. The sad thing is that there are potential customers who are living in homes that they can't afford to heat, who could benefit from a lifetime mortgage.
“There needs to be education, not just for consumers, but also advisors and professionals such as solicitors and accountants.”
He observes, “Mortgage brokers looking to get into equity release need to be supported and encouraged by the sector with training, which is something that collectively, I'm proud
to say, the whole sector is working together on. We're more than happy to work with any broker firm to grow their business and offer that support.”
“Mortgage brokers looking to get into equity release need to be supported and encouraged by the sector with training, which is something that collectively, I’m proud to say, the whole sector is working together on”
Les Pick,
more2life
“Customers may also be looking to adapt their homes and carry out essential repairs that would keep them in their properties, and on the flip side there’s still a large need for inheritance tax planning.”
MyPure, an online account-management platform designed to enable customers to self-manage their lifetime mortgages, reflects an increased demand for a digitised service.
“More and more customers want to see more of a digitised journey for their equity-release products,” declares Burman.
“Our approach is very much around engagement. We listen to feedback and adapt our offering, depending on what the customer and broker feedback is. I want us to be known as the easiest and slickest lender to deal with.
Copyright © 1996-2023 KM Business Information UK Ltd.
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there was a spike in births following World War One.
narrowed over the last three decades.
He notes that customers’ expectations are different now from those of previous generations.
“People can be in retirement for a very long time,” Pick reasons. “They want a more fluid retirement, and that could encompass times when they're in and out of employment. The sad thing is that there are potential customers who are living in homes that they can't afford to heat, who could benefit from a lifetime mortgage.
“There needs to be education, not just for consumers, but also advisors and professionals such as solicitors and accountants.”
He observes, “Mortgage brokers looking to get into equity release need to be supported and encouraged by the sector with training, which is something that collectively, I'm proud
to say, the whole sector is working together on. We're more than happy to work with any broker firm to grow their business and offer that support.”
VALUE
“Mortgage brokers looking to get into equity release need to be supported and encouraged by the sector with training, which is something that collectively, I’m proud to say, the whole sector is working together on”
Les Pick,
more2life
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Equity release is Pure Retirement’s specialty. The lender distributes its products entirely via mortgage intermediaries and has a loan portfolio valued at £4bn across more than 45,000 customer accounts.
“We can take retirement clients from the age of 55 up to the age of 90 – and the average age is 69 years,” says Scott Burman, head of distribution at the Leeds-based business.
“Typically, in the current market, we’re seeing many needs-based customers with interest-only mortgages to pay. Their deadlines are coming up and they can't quite raise enough funds, so they’re turning to their property wealth – the loan-to-values are a big challenge at the moment.
“Customers may also be looking to adapt their homes and carry out essential repairs that would keep them in their properties, and on the flip side there’s still a large need for inheritance tax planning.”
MyPure, an online account-management platform designed to enable customers to self-manage their lifetime mortgages, reflects an increased demand for a digitised service.
“More and more customers want to see more of a digitised journey for their equity-release products,” declares Burman.
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“Later-life is a huge market, and it’s getting bigger year on year. The people who fall into this demographic want to live their lives differently than perhaps previously.
A later-life mortgage helps them do that”
DARREN DEACON,
FAMILY BUILDING SOCIETY