It should not be assumed that only older mortgage borrowers can be in vulnerable situations, it was said at an industry event.
On a panel at the Mortgage Solutions Later Life Lending Event this week, Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said the bridging of the later life and mainstream markets had made the job of an adviser harder.
She added: “If you can fully understand – which Consumer Duty does bring to the forefront – your customer’s holistic situation, things that aren’t necessarily on your fact-find… it will benefit you as an adviser because you’re building a sustainable relationship with your customer and also make sure that you offer the right advice.”
Grimshaw said it was no longer the case that a borrower’s options were either standard mortgage or equity release, and a 55-year-old customer would already be considered a later life borrower, as a 30-year term would take them into retirement.
Difficult conversations
Stuart Powell, founder of Advice Guru, said in light of Consumer Duty, this made conversations around vulnerability difficult for advisers, as there was not the same support as with rates and criteria.

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“Do we actually find subject matter experts and have conversations with them?” he said.
He said discussing vulnerability was part of a wellbeing check with a client and asking them how they were to see if they were in a vulnerable situation.
“Just by talking to a client about their wellbeing, you can pick out those kinds of topics,” Powell added.
He also said a lot of information could be picked up by looking at a client’s bank statements, and gave an example of a client who sent thousands of pounds per month to someone she met online.
Panel chair Paul Glynn, managing director of B2B at Key Group, asked how to avoid vulnerability being seen as a negative thing.
Kelly Melville-Kelly, director of risk, policy and compliance at the Equity Release Council, said the Financial Conduct Authority (FCA) had moved its terminology to describe it as customers in vulnerable circumstances, acknowledging that circumstances could change.
Mark Lambert, director of Viva Retirement Solutions, said based on this, it was “not just later life clients who are in vulnerable circumstances”.
Lambert added: “I speak to a lot of mortgage advisers who are introducers, they say, ‘I have a client who is vulnerable, they might be one of yours’, but they’ll have first-time buyers who have a real knowledge vulnerability, clients who are splitting up in their 30s and 40s who are not assessed to see whether they are in a vulnerable situation at all.
“It’s not an age thing, it’s a circumstance thing, and mortgage advisers need to be more aware that they are dealing with clients in vulnerable situations, and they need to discuss that with them and document it.”
Lambert said although saying a client was in vulnerable circumstances was “milder”, Viva preferred to describe it as clients “needing additional support”, because telling a client they were vulnerable “did not sit very well”.
He said clients would not be aware of the advice journey others had gone on so may not have the same negative feelings when being told they are receiving additional support.