ER advisers demand mortgage prisoner solution
Nearly a third (30%) of advisers want product development to focus primarily on interest-only mortgages.
Advisers estimated that a quarter (25%) of over-55 clients have outstanding interest-only mortgages.
Andrea Rozario, chief corporate officer at Bower Retirement Services, said: “The drop in the number of outstanding interest-only loans shows the success of efforts to ensure people who are at risk are aware of the problem and are taking action.
“However advisers are seeing increased inquiries from over-55s customers looking for help on dealing with interest-only issues and are realising they need to offer a range of solutions which includes equity release plans.
“Equity release plans which enable customers to pay interest are a logical solution for many and underline the need for continuing innovation in the industry as the demand is undeniable there.”
The Bower research shows strong interest in downsizing – on average advisers say a quarter of clients have asked about downsizing in the past year.