The significant number of interest-only mortgages reaching maturity over the coming year provides an opportunity for mortgage brokers, Louisa Sedgwick, director of sales at Vida, has claimed.
The interest-only mortgage market has recently come back under the regulators spotlight with the FCA probing if lenders are acting in the best interests of consumers.
With many of these loans due to mature in the next few years there are concerns that many lack a viable repayment option.
But Sedgwick said the situtation should be looked at as an opportunity to better serve clients with knowledgable advice.
“Interest-only is a great opportunity for brokers,” said Sedgwick. “These customers will need advice and they just aren’t going to be able to get this from the high street.”
One of the options available is equity release with Santander already signposting customers to Legal & General for advice.
Sedgwick was speaking today at the Mortgage Business Expo in Leeds.