The Mortgage Lender plots entry into later life lending
The Mortgage Lender plans to launch into later life lending next year, deputy chief executive Peter Beaumont has revealed.
The lender, headquartered in Glasgow, will firstly concentrate on improving its existing residential product line.
Beaumont (pictured) said: “We’re looking at the lending into retirement industry in addition to the core range.
“We’ve been researching it for some time – and we’re looking to launch into it next year.”
He added: “Firstly we’re looking to relaunch the residential range later this year.”
The Financial Conduct Authority’s move to recategorise retirement interest-only mortgages as residential products rather than lifetime has opened the door to more lenders offering the product.
Meanwhile the equity release market is set to grow further, as Key Retirement director Dean Mirfin has predicted lending surpassing £4bn this year, after it totalled £3.06bn in 2017.
David Hollingworth, director of communications at L&C Mortgages, said: “This continues the trend of more lenders recognising the needs of older borrowers and the recognition that this is a growing sector.
“Of course you are lending to a more vulnerable sector so you need to have the underwriting process to cope with that.
“Entrants are coming thick and fast. Those you deem to be more specialist lenders need to make sure they’ve got an option – it seems a natural extension of their product range.”
The Mortgage Lender rebranded last week, while the week before it emerged that Shawbrook has purchased a significant stake in TML.