You are here: Home - Your Community - Top Comments -

Retirement interest-only a ‘big opportunity but products so far are income based’ – Star Letter 28/09/2018

  • 28/09/2018
  • 0
Mortgage Solutions and its sister title Specialist Lending Solutions select the most thoughtful or thought-provoking comment for Star Letter.


This week’s letter comes from Peter Yates, managing director at Premiership Mortgage Team, in response to the article: Exclusive – Legal and General to launch RIO and encourage mainstream broker interest.

Yates said the expansion of retirement interest-only is “a big market opportunity” but suggested the deals on offer could be improved.

He said: “The new products appearing so far are income based with monthly payments. Most people interested in this [product] will be property rich and income poor which is why they wish to release equity and won’t fit this criteria.

“What about a product which advances up to 40% of the value, interest roll up and the flexibility of capital draw-down?

“This would enable the benefit of lower rates than the current equity release average of 5.5% and be a far more attractive product to those with small incomes not wishing to pay three times the rate of the average re-mortgage.

“Come on lenders.”

There are 1 Comment(s)

You may also be interested in

  • Congratulations to all those Lenders who have made the 2019 shortlist for the L&G Mortgage Club Awards…
  • Vote now in our poll: Are you working harder than ever to demonstrate your client value? - Mortgage Solutions…
  • Congratulations to our finalists for Business Leader: Intermediary Lender (less than £5bn gross lending p.a) -…

Read previous post:
Nick Chadbourne ceo LMS
Borrowers increasingly consulting brokers to remortgage – LMS

More than four in five borrowers who remortgaged in July used a broker to do so, according to data from...