This comes on the back of a recent call from the Intermediary Mortgage Lenders Association for clarity on what the regulator deems acceptable practice on lending into retirement. IMLA stated that this should form part of the Financial Conduct Authority’s thematic review of the mortgage market.
Despite agreeing with the sentiments behind this call, Brightstar is keen to point out that although many lenders are choosing to implement a strict line regarding affordability, others continue to adopt more flexible views and criteria when it comes to mortgages in retirement.
Rob Jupp, Chief Executive Officer at Brightstar Financial, said:
“The recent IMLA report made some salient and timely points. It is clear that issues surrounding lending into retirement require more clarity from the regulator especially in light of new pension freedoms coming into effect in 2015.”
It is good to see trade bodies such as IMLA highlight this topic across the industry and in the mainstream media. However, for brokers it’s also vital to realise that a number of solutions do remain available for older borrowers,with the vast majority of these accessible through a good specialist distributor. And, here at Brightstar, we’re a passionate believer in finding alternative lending sources to meet the needs of introducers’ clients.”
