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Lenders have been ‘overzealous’ on lending into retirement – Kensington

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  • 08/10/2014
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Lenders have been ‘overzealous’ in restricting lending into retirement, Kensington Mortgages chief executive Keith Street has said.

Street, speaking at the Mortgage Business Expo in central London, said the view from the FCA was that lenders had been too rigid with their criteria.

“Lending into retirement is something that perhaps we’ve been overzealous on as an industry,” he told the audience.

“We need to be more understanding of people. You’re not going to be a hod carrier on a building site until you’re 80 and earning your current level of income.

“But if you’re a consultant or have your own business I think we need to reflect that and push back this nothing can even be interest-only and nothing can be lent into retirement [mindset]. I think we need to look at the individual circumstances.”

Following the purchase of Kensington by a US investment group, Street said the lender would be looking at its own criteria changes in coming months.

The lender is already targeting an increased share of the market in the self-employed sector.

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