Will Hale CEO Key comments on FCA Mortgage discussion

25 June 2025

We welcome the FCA’s discussion paper on the future of the mortgage market which was published today.

It is particularly encouraging to see the importance of later life lending acknowledged given the opportunity for property wealth to help many customers enjoy a more comfortable and fulfilling retirement and to address some of society’s key challenges as we face an aging population, many of whom are woefully under-saved into pensions and other investments.

Three facts from the FCA paper standout in highlighting the problem and the opportunity – 38% of people of working age are estimated to be under-saving for retirement, £2.6 trillion of property wealth is in the hands of the over 65s and 22% of non-retirees feel unprepared for retirement because they don’t understand their options.

The cost and friction caused by the current framework, including the regulatory rule book, has led to entrenched silos in the intermediary ecosystem, means that many customers fail to access these potentially life-changing products.

The question posed in the paper around enabling more holistic advice is one that needs careful consideration given some of the drivers behind the development of target support models in other parts of the financial services market.

We must guard against introducing more complexity, drive greater awareness and perhaps be prepared to accept more risk given the ultimate big picture objective of creating substantial aggregate benefit, for individuals and the economy, by ensuring more customers can engage safely but cost effectively with modern later life lending products.

What is clear is that we need a radical approach to create a better market that works in the interests of older borrowers, delivering improved outcomes and an environment where advisers and advice businesses can thrive. Trade bodies have a crucial role to play in representing the views of their members and must be prepared to collaborate and be bold in landing a vision for the sector which could lead to a very different landscape from what we see today.

The regulator should be applauded for its progressive thinking and the engagement it is seeking from a wide range of stakeholders. We now have a moment in time opportunity to influence meaningful change so as an industry we must engage positively with this discussion paper and make our opinions heard, to drive benefit for a much wider range of consumers.