How to market later life lending

According to the latest figures from the Office for National Statistics*, the UK's population of older adults continues to grow. As of mid-2023, there were over 12 million people aged 65 and over in England and Wales, representing 19.7% of the total population. Additionally, there were approximately 14,850 centenarians, more than double the number in 2002.

This demographic shift underscores the growing demand for later life lending. Many individuals in their seventies, eighties, and beyond are exploring ways to borrow money or access the equity in their homes to support their financial goals. Lenders have responded with an expanding range of products tailored to this market.

But how do you effectively market later life lending in today’s environment?

1. Clearly Define Later Life Lending

It’s essential to clearly communicate what later life lending entails. Demonstrate the opportunities it provides for older individuals who wish to release equity from their homes or take out new mortgages. Highlight scenarios where it can make a significant difference:

• Home Improvements: Enabling older homeowners to adapt or enhance their homes, allowing them to stay in familiar surroundings longer.
• Property Purchases: Assisting retirees in purchasing a new home, whether for downsizing or relocating.
• Family Support: Helping younger generations with university fees, wedding expenses, or getting onto the property ladder.
• Enhanced Lifestyle: Freeing up cash to enjoy retirement, take a family holiday, or fund other personal goals.
• Interest-Only Mortgage Solutions: Assisting clients whose interest-only mortgages are reaching maturity.
• Healthcare and Care Costs: Funding medical bills, care home fees, or other necessary expenses.

It’s crucial to address any lingering misconceptions, particularly those tied to equity release or lifetime mortgages, which have historically had mixed reputations. Explain how the market has evolved, emphasising modern safeguards, flexibility, and a broader range of solutions.

2. Provide Balanced, Expert Guidance

Position yourself as a trusted adviser. Highlight that while later life lending offers valuable solutions, it is not suitable for everyone. Make it clear that you assess each client’s situation individually, ensuring their needs, circumstances, and long-term goals are carefully considered.

Showcase your expertise in this specialised area and your relationships with niche lenders. Discuss how this enables you to offer bespoke solutions tailored to older clients. Including examples or anonymised case studies can help prospective clients relate to the options available. For instance:

• A case where later life lending helped fund home renovations.
• A scenario where a client’s interest-only mortgage challenge was resolved.
• Instances where you advised against later life lending, reinforcing your impartiality and client-focused approach.

3. Understand Your Audience

Consider your audience carefully. Are you speaking directly to the older generation, or are you targeting their adult children who may be researching options on behalf of their parents? Adjust your messaging and platforms accordingly.

For example, older audiences might prefer straightforward, easy-to-read materials, while younger family members may engage more with online resources like blogs, guides, and social media content.

4. Create a Dedicated Website Page

A dedicated section on your website for later life lending can enhance your credibility and position you as an authority in this niche. This page can serve as a hub for guides, videos, case studies, and FAQs. It also makes it easier for prospective clients to find relevant information without navigating through unrelated content.

5. Map Content to the Buyer’s Journey

Understanding where your prospective client is in their decision-making process—known as the buyer’s journey—can help you tailor your marketing materials effectively.

• Awareness Stage: Prospective clients are gathering initial information. Content like blog posts, explainer videos, social media posts, and infographics works well here. For example, a blog answering questions like:
  • “Can I borrow at age 75?”
  • “How do I use my home equity to fund care costs?”
• Consideration Stage: Clients are comparing options and seeking more detailed insights. Offer in-depth resources such as downloadable guides, webinars, or newsletters. A free guide, gated behind a contact form, can help you build a valuable mailing list.
• Decision Stage: At this stage, clients are ready to choose a provider. Help them make that choice by offering case studies, testimonials, and clear information about your services and expertise. A free initial consultation can be particularly compelling.

6. Stay Updated on Industry Trends

The later life lending market continues to evolve, with new products and regulatory changes. Stay ahead by keeping your knowledge current, and ensure your marketing reflects the latest developments. This demonstrates your commitment to serving clients with up-to-date solutions.

By following these steps, you can position yourself as a trusted expert in later life lending, building stronger relationships with your clients and helping them achieve their financial goals.