Addressing an audience of mortgage and equity release professionals at Mortgage Solutions’ Later Life Lending Event in Gibson Hall, Robert Sinclair, chief executive of AMI, said large lenders were ‘sticking with their relatively simple scorecard customers’.
Sinclair said he had seen better results from the building societies sector, which has focussed on improving mortgage policy for older borrowers over the last 12 months. He said building societies have a better relationship with the Prudential Regulation Authority around what they are permitted to offer in the niche lending space.
He added: “I implore large lenders to engage more in this area and work harder in it. It is essential if we are going to get the right things for this country [which will be helped] if large lenders play in this space.”
During a panel debate at the conference, Brian Holland, head of commercial planning at RBS, said the bank had no plans to enter the equity release market at this time and was comfortable sticking to its mainstream borrower profile.
Sinclair praised the Financial Conduct Authority (FCA) for its willingness to engage with the mortgage industy on how to better serve the needs of older borrowers.
“Anyone with a view on how financial services can be improved to serve older borrowers needs more effectively should speak up, because the FCA is keen to listen,” he added.
The FCA launched a discussion paper on the ageing population and the role of financial services in February this year. It is expected to launch its ageing population strategy in the summer of 2017.
