FCA Consumer Duty reviews can be daunting for brokers - lenders can help

03 February 2025

Leon Diamond, CEO and Founder of LiveMore, the mortgage lender for people aged 50 to 90+:

The FCA’s latest letter to mortgage advisers sends a clear signal: Consumer Duty remains a top priority. Over the next two years, the regulator will be closely scrutinising how firms are embedding these principles, with a particular focus on later-life lending. The challenges in this space are well known, and previous FCA reviews have already highlighted shortcomings in advice.

Advisers, of course, want to take a holistic, customer-first approach. Good advice in later-life lending isn’t just about income - it requires a broader view, incorporating pensions, investments, and other assets. But translating that into clear recommendations isn’t always straightforward. The market continues to evolve, offering more choice than ever. While this is good for consumers, it can make it harder for brokers to identify the most suitable solutions.

Crucially, later-life lending is no longer just about equity release. The FCA has emphasised the importance of presenting alternatives, and there are now a range of mainstream options - standard capital and interest, standard interest-only, and retirement interest-only (RIO) mortgages. The sheer volume of products, however, can be daunting. To meet the diverse needs and financial profiles of consumers, at LiveMore alone, there are more than 250 later-life mortgage options available.

Technology could play a significant role in making this process easier, yet the right tools have been lacking. Matching a client’s needs to the right product, in a way that is both efficient and transparent, remains a challenge. This is where smarter solutions are needed.

At LiveMore, our in-house team has developed the LiveMore Mortgage Matcher®, an AI tool designed to help brokers navigate this complexity. In just a few minutes, it analyses more than 250 products across LiveMore's wide range of later-life mortgages including standard capital and interest, standard interest-only, RIO and equity release - generating a clear, structured overview of the most relevant options. Crucially, it’s designed to support brokers in delivering Consumer Duty-compliant outcomes - helping them provide clear, well-evidenced recommendations.

Later-life lending will only continue to grow, and with it, the need for robust, transparent advice. As the FCA sharpens its focus, the industry must respond with the right balance of expertise, innovation, and responsibility.