FCA Market Study will consult with equity release customers

Review of later life mortgages will involve customer research from July

The Financial Conduct Authority (FCA) launched its Later Life Mortgages Market Study in March 2026. It’s looking at whether work is needed to enable lifetime mortgages (the main form of equity release) and retirement interest only (RIO) mortgages to meet consumers’ changing needs.

The process is now well underway. The FCA has already started talking to stakeholders including advice firms, and it will begin research with later life mortgage customers from July. It intends publishing its interim findings towards the end of 2026.

The terms of reference for the Market Study include:

• The availability of advice on lifetime and RIO mortgages.
• Consumers’ needs and preferences when it comes to later life mortgages.
• The likely need for existing later life mortgage providers to add capacity, or for new providers to enter the market (and any barriers to growth or new entrants into the market).  
• Whether new later life mortgage products are needed.
• The role of alternatives to equity release, including downsizing.
• The role of standard mortgages, but recognising that as these require regular interest payments they are not suitable for many retirees. 

Why is this Market Study being held?

The main driver for this initiative is the fact that older homeowners may increasingly have to use their housing wealth to achieve financial security and comfort in retirement. The FCA point out that government analysis suggests 43% of people are under-saving for their retirement.

Lifetime and RIO mortgages offer a solution to the retirement income shortfall. That’s because millions of people with the prospect of less pension income than they need are sitting on property wealth. These mortgage products enable people to access some of that wealth, without having to sell up and move home.

The FCA is concerned that the provider market may not be able to meet future demand, and so will need to expand. 

Building on market innovation

Later life lending providers are clearly keen to offer more choice and flexibility to customers. We have reported on innovation in the sector several times over the past year or so, including a recent update on Canada Life’s lifetime mortgages. 

We look forward to the FCA Market Study being the catalyst for further change. Its focus is quite rightly on providing pathways to good outcomes for even more people who wish to tap into their property wealth.

Looking for a later life lending solution?

If you are already thinking about equity release, why not talk to an adviser who can help you understand your options and compare plans across leading lifetime mortgage and RIO mortgage providers?

To find out if you are eligible, how much you can borrow, and get all the advice and support you need, talk to one of our selected advisers by calling 0808 178 3055 or request a call back.