"Advisers can probe and challenge any pre-conceptions customers may have and help highlight the benefits of making repayments."
Later life lending platform, Air, has launched a new Later Life Lending Navigator, which has been designed to support advisers as they discuss affordability with their clients.
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.
From launch, the tools will cover considerations around standard residential mortgages, RIOs and lifetime mortgages. 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.
In keeping with Consumer Duty requirements, the Navigator will ensure all types of later life lending products are included in the scope of early discussions with customers.
Advisers can build a detailed picture of their client’s ability to make payments and, given products within the later life lending arena offer 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.
Having already trialled the tool with a range of advisers and lenders across the broader later life market, the Navigator is now fully available to members at www.airlaterlife.co.uk/gain-exclusive-access-to-our-affordability-tools/.
Paul Glynn, CEO of Air, commented: “The later life lending market is evolving, and affordability is becoming an increasingly important consideration for many customers keen to manage their borrowing. 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.
“Air is therefore delighted to launch its Later Life Lending Navigator tool, which it has built with input from members, partners and lenders who are keen to help more formally integrate these important considerations into their advice process. 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.”
Will Hale, CEO at Key, added: “In the context of enhanced expectations post Consumer Duty and an ever-evolving later life lending market, Air’s Navigator can play a central role in helping advisers demonstrate a field of vision beyond their own specialism and support the delivery of good customer outcomes. 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. With older customers suffering as a result of the cost of living crisis and sometimes a sharp increase in mortgage repayments as they come off fixed rate deals the need for good quality advice centred around affordability has never been more important."
