Two-fifths of brokers have never placed interest-only case for over-55s
An estimated 44% of brokers have never placed an interest-only case for a client aged over 55, according to a webinar by LiveMore in conjunction with Knowledge Bank.
The webinar also revealed that 89% of delegates had seen an increase in borrowers currently on an interest-only mortgage approaching its end of term with no repayment vehicle in place.
As well as this, 40% said that mortgage prisoners stuck on standard variable rates (SVRs) were also becoming more common.
Alison Pallett, director of sales at LiveMore, said: “It’s great to participate in these live events, to talk to brokers about real live cases and to be able to help their clients find real solutions.
“For many years, the large lenders have been ignoring what has been happening in the over-55 section of the mortgage market.
“Many of these borrowers are coming to the end of interest-only deals with no provision for paying off the outstanding capital balance.
“They’re realising that the main lenders are being less than helpful and the options left to them are unattractive.
“Our fresh approach to affordability looks beyond the applicants age and focuses on more relevant financial issues.
“We may also be able to consider income that will plausibly continue beyond a ‘traditional’ retirement age.”
Nicola Firth, chief executive and founder of Knowledge Bank, added: “Here at Knowledge Bank we are passionate about not only providing brokers with the tools they need to research criteria but also the information that goes alongside that to give them the confidence to understand both existing and emerging areas of the market.
“We know from the feedback that we receive from brokers that giving lenders like LiveMore a platform to deliver valuable education to them is instrumental in them being able to take that forwards into a practical application of that knowledge.
“In a poll at the end of the session, 93% of brokers said that they would now feel confident in placing an interest-only case for clients over the age of 55 which is fantastic as the more conversations that are taking place, the better served their clients will be as all options are considered.”