Paul Roberts (pictured), senior account director at Family Building Society, said the later life lending market as a whole was “growing” as the population ages and clients will “need support”.
He noted that standard interest-only mortgages, retirement interest-only (RIO) and reverse JBSP could be alternatives to equity release.
“It’s trying to have a tool to help as many clients as possible, often that are perhaps under-served by the high street, and this is where the building society sector tends to excel.
“We don’t offer equity release ourselves, but we’re a stepping stone, potentially, to equity release. A client who is 70 years of age now may not feel that equity release is appropriate, but by being able to offer them longer terms or JBSP allows them to have a stepping stone before they perhaps do need equity release,” Roberts explained.
Grace Bennett, business development manager (BDM) at Family Building Society, said the majority of the mutual’s customers were of an older age and it was important to have that “alternative option” in case it was needed.
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“It is not to say that equity release might not be the long-term goal eventually, but it may be that the client is not quite ready to go on to that yet or the kids aren’t ready… to say goodbye to their family home. It’s just being able to find another way to help,” she said.
Bennett added that a lot of clients might also still be working and so may need a mortgage for longer.
“Whilst we might not be using that earned income for affordability, they can still service that mortgage payment, so having reverse JBSP and having the kids come on there and help them is a great option for that as well,” she said.
