more2life has responded to the Financial Conduct Authority’s (FCA) Mortgage Market Discussion Paper, calling on the regulator to create conditions for the later life lending sector to deliver its full potential.

The lender has welcomed the FCA’s recognition of later life lending as central to the future of the mortgage market and that it believes that chapter three of the discussion paper can be a "landmark moment for the sector".

However, it argued that without regulatory reform, millions of homeowners approaching retirement risk being left without access to all the available solutions that could improve financial resilience, enhance living standards and support wider societal and economic goals.

To address this, more2life has highlighted five areas where regulatory change is needed. These include the removal of advice silos, the unifying of adviser qualifications and the provision of clear regulatory guidance.

It has also called for mandatory disclosure requirements and for the FCA to ask how it can support product innovation to allow hybrid and flexible products to reach their target markets.

Chief executive officer at more2life, Dave Harris, said: "The FCA’s Discussion Paper, and the specific chapter on later life lending, is a recognition of how important it has become, but recognition is only the first step. The next is action. Older borrowers need advice that reflects their full range of options, not advice determined by whether their adviser happens to hold a separate qualification.

"These solutions are already here. What is missing is the regulatory framework to ensure more people can access them."

In making its case, more2life pointed to the range of innovations already in the market that are delivering tangible benefits for customers.

This includes the fact that around 40% of its lending is in drawdown lifetime mortgages; interest reward product availability offers a discount for making repayments over a set period; downsizing protection helps customers move without early repayments; and intergenerational support continues to grow as a driver for demand.

The later life lender said that the impact of these innovations is not limited to individual households with its lending activity over the past five years is estimated to have generated £11bn in wider economic benefit.

Harris added: "The FCA has asked the right questions. Now we need it to deliver the right answers: one advice journey, consistent qualifications, mandatory disclosure of later life options, and clear guidance that gives advisers the confidence to act. We are ready to play our part, but the framework has to evolve if later life lending is to achieve its full potential."

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