Air, the later life lending platform, has launched a package of support tools called Later Life Lending Navigator, designed to give advisers help with discussing affordability and suitability with clients.
According to Paul Glynn, chief executive of Air, the later life lending market has been evolving significantly at a time when affordability is becoming an increasingly important consideration for many customers keen to manage their borrowing.
He said: "Consumer duty, the proliferation of new and emerging products as well as the higher interest rates, have all pushed this issue to the top of the agenda."
This was why Air launched its Later Life Lending Navigator tool, built with input from members, partners and lenders.
Part of Air Sourcing, the Navigator will initially consist of two different tools.
The first focuses on using top level affordability considerations to help narrow down the range of potential products which may be suitable for the client.
The second will allow advisers to easily compare the total cost of borrowing across lifetime mortgages (repayments and no repayments), residential mortgages and retirement interest-only mortgages.
Glynn added: "Providing personalised advice which stands the test of time is the aim of every adviser and these tools will help our members to deliver against this ambition.”
The tools will cover considerations around standard residential mortgages, RIOs and lifetime mortgages.
Advisers can build a detailed picture of their client’s ability to make payments. With new products within the later life lending arena offering some provision for ad-hoc or ongoing repayments, the tool will also guide product choice and ensure that all options are fully discussed as part of the advice process.
According to Glynn, Air will continue to develop and refine the tool using feedback and support from members and partners, adding further product categories as new variants are launched by lenders.
Adviser reactions
Navigator has been trialled with some advisers and lenders already across the UK.
Emma Graham, business development director at Hodge, said: “It will help advisers discuss the full suite of options available to customers who can afford to make payments, and will compliment the tools and products offered as part of our range.”
Will Hale, chief executive at Key, said: "As we embed the tool into our advice process, being able to quickly assess affordability and other aspects of product eligibility alongside softer preferences can help our advisers have a more rounded discussion with customers about all the options that may be available to them.
"Furthermore, with the tool illustrating the potential difference in costs between different later-life lending products, advisers can probe and challenge any pre-conceptions customers may have, and help highlight the benefits of making repayments."
