Age Partnership, a specialist in retirement income, has revealed that an increasing number of older borrowers are now resorting to taking out an equity release loan to repay their mortgage, if it was set up on an interest-only basis.

According to its study, following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review (MMR), which was carried out by the Financial Conduct Authority (FCA) back in April of 2014, tougher affordability regulations and guidelines enforced by lenders have made it increasingly difficult for older people to facilitate their mortgage needs. It was claimed that this was because lenders are reluctant to lend past retirement.

Figures showed that around 300,000 of the UK’s interest-only borrowers will be stuck if their current deals finish before 2020. However, nearly 2,250 mature borrowers have turned to equity release to repay their original interest-only loan.

Simon Chalk, who is an equity release specialist for Age Partnership, said:

“The interest-only time-bomb has been made all the more devastating by the affordability criteria introduced by lenders as a consequence of the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review. Fewer older homeowners have the opportunity to remortgage to set up a new strategy to clear their debt.”

Once you have qualified following the completion of your CeMAP course, you will be in a position to then identify your customers’ needs. As such, you can better support them in establishing and recommending the most appropriate mortgage packages. You will also be able to advise them based on your employer’s processes and procedures, while complying with FCA regulation, by completing a full affordability test.

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