Boulger: FCA has failed older borrowers
He was speaking in the wake of the the news that pensions expert and campaigner Ros Altmann will become a Tory peer if the party wins the election – an announcement he backs.
Boulger said: “Although the FCA says there is nothing in the Mortgage Market Review about lending to older borrowers lenders are worried about being punished for something down the line.
“I regard it as regulatory failure as the FCA has failed to convince lenders that the MMR does not prevent lending to older borrowers as long as affordability can be proved.”
If Altmann does indeed become a Tory peer Boulger hopes she will bring some clarity to the market.
He added: “If there was a report by Ros highlighting the issues that haven’t been fully thought through that may stand as a basis for some more legislation or more mortgage regulation to make things easier for some older borrowers.”
Boulger also questioned the logic of not lending to older borrowers generally, as he said: “If you can prove your income it does seem like nonsense.
“If the person dies what’s going to happen? The executors will either sell the property or there will be a delay for a few months before the mortgage is repaid.
“The majority we see is below 50% LTV. Provided the loan to value is low if the lender has to roll up the debt for a few months it’s not going to negatively affect them.”
In November 2014 the Intermediary Mortgage Lenders Association found that homebuyers as young as 40 have been frozen out of the market post-MMR.