Awareness of the extensive product innovation in the later life lending market is growing but advisers admit they need more support, research from Air reveals.

The study of over-50s specialists, wealth advisers and general advisers found that 83% are aware of the innovative new products being launched by lenders.

Nearly half (47%) questioned say they are very aware of the range of new products including higher loan-to-values (LTVs), shorter and fixed early redemption charges and increased flexibility around regular payment options enabling customers to repay interest and capital or both.

Around 42% say they are aware of term interest only mortgages while 40% are aware of payment term lifetime mortgages and 40% are aware of interest reward lifetime mortgages.

However, the increased options for later life lending and complexity for advisers is driving a need for more support.

Around three out of four (73%) who say they are aware of later life lending innovation have yet to recommend products to any clients.

Meanwhile, 44% of those questioned said they are very confident they have the skills and expertise to advise clients across the full range of later life lending products.

Around two out of five (37%) said they are quite confident they have the skills while nearly one in five (18%) questioned said they are only confident about advising on standard lifetime mortgages and not the new products.

Air chief executive officer Will Hale says: “Product innovation, not only in the lifetime mortgage sector but also in terms of Retirement Interest Only mortgages, Term Interest Only mortgages and long-term fixed rate products, has created a complex landscape for mainstream mortgage advisers and later life lending specialists alike.”

“Help is on hand through the sourcing and research tools available and with the professional development resources and support provided by lenders and through networks and mortgage clubs.”

“Creating better outcomes for customers requires advisers across the market to engage with these services and also to put in place referral arrangements with trusted specialists if they do not want to expand their proposition but still be able to ensure that all options are offered to clients.”