"Review of Later Life Mortgage Firms by Financial Conduct Authority Leads to Improvements and Removals of Misleading Promotions"

"Review of Later Life Mortgage Firms by Financial Conduct Authority Leads to Improvements and Removals of Misleading Promotions"

The Financial Conduct Authority has conducted a review of later life mortgage firms, which are responsible for around half of all lifetime mortgage sales. The review revealed satisfactory advice was not given in many cases and improvements were needed to ensure customer’s individual circumstances were considered and alternatives discussed. As a result of the review, almost 400 misleading promotions and advertisements have been removed or amended, while firms have been required to make improvements to their sales and advice practices. Going forward, the FCA is driving significant changes to ensure more personalised advice is given, showing consideration to customers’ circumstances when it comes to releasing money tied up in their homes to help meet later life needs. All firms must ensure they follow the existing rules and guidance, and adhere to higher standards under the Consumer Duty.