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Lending into retirement stall still open, says Brightstar

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  • 28/11/2014
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Lending into retirement stall still open, says Brightstar
Brightstar Financial said ‘mortgage into retirement' options are still available to intermediaries,after IMLA highlighted the fact lenders fear a future regulatory clampdown earlier this month.

This comes on the back of a call earlier this month from the Intermediary Mortgage Lenders Association (IMLA) for clarity on what the regulator sees as deems acceptable practice on lending into retirement.

IMLA said the issue needs to be examined as part of the Financial Conduct Authority’s thematic review of the mortgage market.

Brightstar agreed but added there are still lenders taking a more flexible view over lending past retirement age.

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.”

“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.”

Speaking at the The Mortgage and Protection Event in Birmingham earlier this month, hosted by Mortgage Solutions, Matthew Wyles, senior adviser at Castle Trust, said lenders needed to stop treating borrowers who had reached their 55th birthday as if they had two heads.

He said: “I think the prize will belong to the brave, those guys who are willing to understand exactly where the FCA are coming from and start to break some of the rules that have evolved, some of the coral reef that lenders have constructed around themselves, which offers a big opportunity there.”

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