Later-life lending platform Air has reached a "milestone" on its bid to raise awareness of a new demographic of customers with mortgage debt in retirement.
Its Comprehensive Conversations Manifesto has now passed 550 signatories, including support from major lenders, brokers, and networks, including Aviva, Stonebridge and The Right Mortgage and Protection Network.
Air CEO, Paul Glynn, said: “In a short time, the campaign has taken huge strides, and our momentum is still building. Today’s milestone has a special resonance.
“Let there be no doubt: mortgage networks are the central nervous system of our industry.
“If a piece of information is worth knowing, then it should circulate into the wider market through these organisations.”
The manifesto’s signatories will promote Air’s list of customer service recommendations, called “safer tracks”, to their broker membership.
These seek to support advisers and clients in navigating the complex mortgage market, changing regulations, evolving product options, affordability challenges, and income analysis.
Air’s campaign crucially aims to raise awareness of a new demographic of customers, many of whom will carry mortgage debt in retirement.
The lender said the traditional equity release market, homeowners aged over 55 who choose to unlock equity from a property to fund discretionary spending, will continue to exist.
However, it pointed out a new demographic of customers is emerging, many of whom will likely purchase a property later in their lives than the previous generation.
As a result, more borrowers will rely on the support that the continuum of lifetime lending can provide them in managing debt on a fixed retirement income.
“The market is splitting into two core demographics: the traditional customer, and the new generation of homeowners who may depend more highly on later-life products and need greater support naivgating the right options for their specific needs,” Glynn explained.
“Networks, lenders, and brokers alike must work in lockstep to ensure that our market can accommodate the increasingly diverse profiles of later-life lenders and meet each lender with tailored advice and expert guidance at each point of the process.”
The manifesto outlines new best practices to ensure networks, brokers, and lenders can adapt to the market shift and provide dependable guidance to the new demographic while continuing to service the traditional equity release customer.
tom.dunstan@ft.com
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