Broker firm The Mortgage Mum is set to open a later-life lending division following clients’ expressions of interest in the area.

Sarah Tucker founded the firm in 2019 under the premise of supporting working mums. She has since grown the business to 32 brokers operating under the brand, with a further two starting this month.

Tucker told Mortgage Strategy that later-life enquiries were previously referred out to an equity release partner, but that clients regularly expressed interest in an in-house offering.

“We think the female touch will work really well in this space, with an extra layer of ‘Mortgage Mum education’ wrapped around it,” says Tucker.

“We intend on using the same model we’ve used to grow our main Mortgage Mum brand, and to really focus on the value we can offer.

“There is still so much that consumers don’t understand about equity release and later life lending, and there are existing barriers that need to be broken down. We feel passionate about overcoming some of the obstacles found in this industry by creating a safe, inclusive space that involves the wider family too; and we’ll be providing a complete trail to avoid any future disputes.

“We’re working closely with a few private client solicitors based in London to really ensure we service these clients in the best way, and to learn from their success.

“The service needs to encompass extra empathy, care, and compassion; with a personal touch that still needs that human element to it, and although historically we’ve worked online to service our mortgage and protection clients, we have needed to create a different client journey for this area of the market.

“We have been able to create the perfect team who have the ability to service all areas with a face-to-face presence between them, as well as an online one.  It feels like this market is growing with the latest quarterly figures showing an increase from £4bn to £6bn. The current cost of living crisis could mean there will be more households needing to access their equity to cope.”

The new division will be launched with four members of the existing Mortgage Mum team, who cover different areas of the UK

“The team are extremely passionate about adding something unique to the sector, and bringing The Mortgage Mum touch,” says Tucker.

Like many brokers, Tucker says demand was quiet at the end of 2022.

“It got very quiet, very quickly from November with residential business dropping by 40% and dropping by 70% in the buy-to-let space.

“Lots of clients wanted to talk to us, but didn’t want to take action, so we anticipate it getting busier now and the first few days of the year support that with regular enquiries coming in.

“Even in a quieter market, I do believe businesses can learn to thrive in a recession – it’s about keeping client focused, having control of your cost structure, and being open to new opportunities and spaces.”

Tucker says her firm will be launching into another new space in the market imminently, but details are currently under wraps.