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The phrase "latter idea" is correct and usable in written English
It is typically used to refer to the second of two ideas or options previously mentioned. Example: "Between the two proposals, I find the latter idea more feasible for our project."
Exact(60)
It's that latter idea that's the real promise.
This latter idea seemed both exciting and compelling.
The latter idea, however, could be a political nonstarter.
The Bush campaign seemed to support the latter idea.
The latter idea on its face would seem to be a reasonable one.
The duo worked together on the latter idea and the Bowser we know today was born.
The latter idea is the big one and would require Staley and McFarlane to swallow hard.
Fina likes the latter idea; even now, his uncle is incapable of taking care of it.
Bruce Craig, the owner of Bath, is particularly keen on the latter idea.
(Mr. Buffett famously hit upon the latter idea while in the bathtub).
"Oh, pshaw," Foster said in response to the latter idea, according to a placard on the desk here.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com