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16 November 2023

Nearly a third (32%) of people aged 50 – 79 years consider themselves vulnerable, according to a LiveMore survey of 500 homeowners.

Almost half of those (47%) said it is because they have little or no savings. Nearly two out of five people feel vulnerable due to poor health (37%) or because they feel burdened by bills and credit commitments (35%). One in three (32%) people consider themselves vulnerable due to mental health issues.

Vulnerability is a key element of Consumer Duty. The Financial Conduct Authority (FCA) defines a vulnerable customer as “someone who, due to their personal circumstances, is especially susceptible to harm – particularly when a firm is not acting with appropriate levels of care.” Brokers are obliged to recognise signs of customer vulnerability so they can provide “good outcomes”, and to be aware that people’s circumstances might change in the future, especially as they age.

This is why, for example, intermediaries should make an annual customer care call, to check how their customer is doing, and that the product they have is still appropriate for their needs.

Leon Diamond, CEO and founder of LiveMore, said: “To encourage brokers to make that yearly call to customers, we offer them an annual customer care fee of 0.13% for up to 15 years. Mortgage lenders and brokers can make a genuine difference to people’s lives, especially during this cost-of-living crisis. Awareness seems to be growing, but too many of our older generations are still unaware of the mortgage and financing options now available to them.

“The Consumer Duty requires those of us in the financial services sector to do better by our customers – and we welcome that. The cost-of-living-crisis isn’t going away any time soon, so it’s more important than ever that homeowners are aware of their options and able to easily understand them.

“We have some great new tools on our website, and brokers can talk to us to find out what’s available for any of their 50+ clients, if they’re not sure. You never know. One of our new mortgage customers was 92.”