But by 2019, as the firm reassessed its broader proposition, one question became harder to ignore: what happens when long-standing clients no longer fit traditional mortgage solutions?
Retirement shifts
The drivers behind later life lending’s rise are as much cultural as they are financial.
“Gone are the days of ‘hit 65, get a carriage clock, and stop,’” Shaw said. “People are working longer, retiring differently, and living differently.”
Clients who once expected to downsize are now reassessing those plans, often choosing to work longer and delay major life changes. Additionally, housing wealth is increasingly being pulled into mainstream financial planning, often via other professionals. Shaw pointed to a growing number of referrals from wealth managers, reflecting how housing wealth is now being considered alongside pensions, investments and protection.
That shift is changing how later life lending is used. Beyond supplementing income, it is increasingly supporting intergenerational gifting, inheritance tax planning and lifestyle decisions. He added that clients are becoming more comfortable using housing equity to support those goals, with less concern from families about the impact on inheritance.