Product innovation and technology must remain central to the later life lending market if it is to achieve sustainable growth, improve consumer outcomes and encourage wider adoption, more2life has argued.

Managing director of manufacturing at the later-life lending and equity release company, Ben Waugh, said innovations such as interest reward lifetime mortgages and streamlined application and underwriting processes, including the firm's ProView tool, were improving choice for over-55s while making the borrowing journey more efficient.

Speaking at Finova's 'Unlocking 10x Growth in Equity Release by 2030' event, Waugh also reflected on the market's rapid expansion in 2022, arguing that lenders should use the experience to strengthen decision-making infrastructure ahead of future growth.

He said technology should complement, rather than replace, financial advice by making high-quality advice easier to deliver at scale, helping to build consumer confidence, attract new lenders and increase referrals from advisers and other introducers.

Waugh stated: "The bottom line is that we need to ensure the market provides choice for consumers, remains an attractive proposition for new entrants, and is a sector that introducers feel confident in referring to.

"Appropriate product innovation – rather than unnecessary complexity – and evolving processes that consistently deliver for consumers and advisers needs to sit at the centre of our thinking if we’re to scale later life lending to its full potential in a sustainable manner and take it from niche to norm."

The comments came as Fairer Finance research suggested around half of UK households aged over 60 may need to access housing wealth to help fund retirement, while the Financial Conduct Authority (FCA) has identified later life lending as a potential "fourth pillar" of retirement planning.

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