Interest-only mortgages one of top requirements for later life advice
Product terms, interest-only mortgages and downsizing as a repayment vehicle were voted top requirements for brokers providing later life advice for their clients, Marsden Building Society has found.
With a growing later life market, set to double in the coming two years, the research highlights that although some are building support around these clients for their intermediary partners, those who are truly committed to this market are still in the minority.
Steve Robinson, head of lending at the Marsden, said: “Many brokers shared concerns from their clients around wanting to stay in their homes for as long as possible, reducing and fixing their rates. Alongside these key concerns was the growing need for interest-only mortgages and the option to downsize.”
“Interestingly, although it wasn’t the most frequent response, many seem to be using their mortgage in later life to help their children or grandchildren onto the property ladder too- something we’ve come across ourselves more frequently lately but that intermediaries seem to be doing more cases on too!
“Longer product terms were also mentioned in abundance with many ‘mortgage prisoners’ having been forced onto SVR they’re looking for peace of mind from their lender that they will be supported at the end of their product term.”
Robinson added: “The recent market changes are setting the tone for later life lending, it’s important that there are more options available for intermediaries and their clients.”