Experts call for more support for later life lending

According to a study by the Council of Mortgage Lenders (CML) and the Building Societies Association, it is crucial that a joined up approach is adopted to deliver advice to older borrowers.

The study indicates that borrowing has traditionally been viewed by lenders of residential mortgages as a way to gain equity and to be able to enjoy a debt free retirement. However, lifetime mortgage lenders view borrowing by older customers as a way to gain value from equity which has been accumulated in a property.

The report makes a recommendation that the single public financial guidance body, which will be introduced in August 2018, should look at how to provide more information for older consumers, and how it can be more easily signposted. A further recommendation looks at how the Financial Conduct Authority can collaborate with industry bodies to deliver information to older borrowers.

Statistics indicate that 46% of all households are believed to be headed by an individual who is aged 55 or older, with a total property wealth of £2.5 trillion. The number of lifetime mortgages and re-mortgages to older borrowers also increased during 2016.

The head of policy for CML, June Deasy, said that older people often have to make complex decisions about finance, including pensions, equity release, mainstream mortgages and wealth management. The study reveals that consumers want clearer signposting to information.

Mortgage advisors study on a CeMAP course to gain the relevant information required to help all borrowers, and are an option for later life borrowers who are looking for information.


Elderly Couple

Related Posts

CeMAP Course Online pop up
Update cookies preferences