You are here: Home - Your Community - Top Comments -

‘Many smaller lenders come up trumps with longer mortgage terms’ – Star Letter extra

by:
  • 11/08/2017
  • 0
‘Many smaller lenders come up trumps with longer mortgage terms’ – Star Letter extra
This week Mortgage Solutions and its sister title Specialist Lending Solutions has picked the best of the rest of the reader comments from our broker audience in Star Letter Extra.

This week’s top broker comment goes to Doug for his reponse on the post: Later-life lending: ‘We can only see demand for advice growing’ – Marketwatch

He said: “We do a few interest-only remortgages in London and have seen many smaller lenders like Hinckley and Rugby Building Society and Mansfield Building Society come up trumps by allowing longer mortgage terms.

“So clients can get another five to 12 years on interest-only at ages 55 to 70 and then decide to downsize, do equity release or sell.

“Mostly, its properties worth £1m+ with existing mortgages with Santander, Virgin Money, Barclays and so on of only £150,000 or less, so the lender risk is very low even if house prices tumble in London.

“There are around 10 smaller lenders all offering this and rates start at 1.9% so it’s much cheaper than doing equity release at a younger age.

“By waiting these extra years, if equity release is used in the future the deals are better for older clients at that stage.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
2288199-manchester-city-football-eithad-wifi-cisco-o2
How long does it take Premier League players (and fans) to buy a house?

The Premier League kicks off a new season tonight with millionaire players entertaining the more modestly paid fans packed into...

Close