MS26/1: Later Life Mortgages Market Study

We are conducting a market study into lifetime and retirement interest only (RIO) mortgages.

We have launched this market study to examine whether change is needed to enable the lifetime and retirement interest only (RIO) mortgage sector to meet consumers’ changing needs, driven by effective competition in the market.

Read our Terms of Reference (PDF)[1]

Our Terms of Reference[1] explains our rationale for this market study, its scope, the issues we’ll explore, the potential outcomes our work might lead to, and next steps.

This study is relevant for a range of parties, including:

Current and potential providers of lifetime and RIO mortgages.
Firms who provide funding to providers.
Intermediaries who are, or could be, involved in the distribution of these products.
Consumers who could benefit from using these products in future.
Existing lifetime and RIO mortgage customers.
Relevant industry and consumer bodies.

Update on the Terms of Reference

We published our Terms of Reference on 20 March 2026, and invited stakeholders’ views. We received feedback from firms, trade associations, consumer groups and charities, industry experts, and academics. We welcome this feedback and thank respondents for their engagement.

After considering these views, we have not made changes to the Terms of Reference. However, we wish to clarify the market study’s scope in two areas.

Products in scope

Several stakeholders questioned our specific focus on lifetime and RIO mortgages and called for the study to include standard mortgages.

Our scope is focused on lifetime and RIO mortgages as these products cater to specific consumer needs and could play a greater role for consumers. While our focus is these mortgages, we will look at how consumers consider alternatives, including standard mortgages. This assessment should capture the impact of a wide range of products on competition and consumer outcomes, without broadening our scope.

Advice and consumer decision-making

Several responses asked whether the study’s scope includes advisers beyond those who sell lifetime and RIO mortgages, such as other advisers who help consumers plan for later life. Some also asked whether the whole customer journey is in scope.

We want to look broadly at what shapes consumers’ understanding and influences their decisions, as we said in the Terms of Reference. This includes the whole customer journey, as well as any factor which may influence whether or not consumers take out a lifetime or RIO mortgage. As part of this, we will explore the role of standard mortgage advisers and other financial advisers in meeting consumers’ later life lending needs.

Also, in close alignment with the market study, we are considering policy options as part of the wider Mortgage Rule Review to support the delivery of more holistic advice, to enable consumers to efficiently access the advice and support they may need when making financial decisions on their housing wealth in later life.

Next steps

We intend to publish our interim findings in Q4 2026. We have sent firms Requests for Information, are undertaking other analysis, such as consumer research, and continue to engage with firms, industry and consumer groups, and other stakeholders. Depending on our findings, we will consider potential remedies alongside policy proposals developed as part of the Mortgage Rule Review.

04/06/2026 : Information added Update on the Terms of Reference

First published: 20/03/2026 Last updated: 04/06/2026 See all updates

MS26/1: Later Life Mortgages Market Study

Update on the Terms of Reference

Products in scope

Advice and consumer decision-making

Next steps

More information

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