The Marsden Building Society research on the later life market showed the ability to downsize as a repayment vehicle was voted top requirement by 18% of brokers providing advice for their clients.
This is followed by product terms, interest only options, competitive rates and flexible underwriting.
Some of the other features that were sought after included the ability to remain in the family home as long as possible, over payment options and lower monthly payments as well as free legals.
The lender predicted that the growing later life market may double in the coming two years. However, the research highlights that although some are building support around these clients for their intermediary partners, those who are truly committed to this market are still in the minority.
Demand for individual underwriting when it comes to later life clients
The research highlighted that often later life clients need a common sense approach to their mortgage and having an individual underwriting approach to this can support the intermediary, said the mutual.
Marsden Building Society has developed its tailored older borrower range which offers a specific product range, criteria, application forms and affordability calculators that take into account lifestyle factors in retirement.
Steve Robinson, head of lending at the Marsden said that many brokers shared concerns from their clients around wanting to stay in their homes for as long as possible and reducing and fixing their rates.
He added: “Alongside these key concerns was the growing need for interest only mortgages and the option to downsize.
“Interestingly, although it wasn’t the most frequent response, many seem to be using their mortgage in later life to help their children or grandchildren onto the property ladder too – something we’ve come across ourselves more frequently lately but that intermediaries seem to be doing more cases on too.
“Longer product terms were also mentioned in abundance, with many ‘mortgage prisoners’ having been forced onto SVR they’re looking for peace of mind from their lender that they will be supported at the end of their product term.”
“The recent market changes are setting the tone for later life lending, it’s important that there are more options available for intermediaries and their clients,” Robinson said.
