Advisors urged to grasp interest-only opportunity

February 4, 2021 by Brendan O'Neill

Mortgage Advisors

Those advisors who attended a virtual industry conference last month were urged by one of the guest speakers to grasp the opportunity presented by interest-only borrowers.

Ben Thompson from Mortgage Advice Bureau was speaking at this year’s Later Life Lending Online Event. He told those attending this digital conference that the later life part of the mortgage market was in a healthy state going into 2021, despite the problems that the pandemic had brought.

During his seminar, called ‘Lessons from lockdown’, he also pointed out that large numbers of interest-only loans were approaching their end date, and suggested that this presents potential opportunities for advisors that they need to be ready to grasp.

According to Mortgage Solutions, he then added:

“Whilst many people will sell a property or move or downsize or repay through their own resources, there will be a huge amount of people who won’t be able to do that and will need a later life product.”

Thompson went on to say that the height of this trend for interest-only loans to come to an end would be roughly 2032. He told advisors specialising in these mortgages that they should grab the chance to collaborate with more mainstream advisors who have some clients of that kind on their rosters to find the later life mortgage loans that will meet the needs of older people.

The CeMAP qualification that people complete to become advisors covers all areas of the market, but those needing more in-depth information about later life loans can get this through CPD.