Many High Street lenders are way behind the times.
Mainstream mortgages for mature borrowers.
The realities of the mortgage market have changed. People are getting on the housing ladder later so the average age of borrowers is increasing. They are working for longer and they often have several sources of income that extend beyond what is widely described as “traditional retirement age”.
High Street lenders have been slow to adapt to the new realities and many offer mortgage products, with lending criteria that is not fit for purpose when it comes to meeting the needs of many more mature borrowers.
RIOs may be misunderstood.
High street lenders have been slow to get their head around retirement interest only mortgages (RIOs). There is also a misconception in some quarters that RIOs are an equity release product and therefore not mainstream.
FCA classes RIOs as mainstream products that are no different from other standard mortgage products and intermediaries do not need to hold extra equity release qualifications to advise on them.
Although a RIO may be used to release equity it can also be used for almost any other purpose, from home improvements, debt consolidation, refinancing an existing mortgage and much, much more.
As with any mainstream mortgage the affordability of an RIO is assessed at the outset. Crucially
however, with a RIO there is no need to make a monthly capital repayment - affordability is only assessed on the ability to pay the monthly interest.
Great technology that slices through red tape.
We provide a number of innovative online tools that make it so much quicker and easier to help your customers achieve their goals and live life to the full – including a Maximum Borrowing Calculator that quickly enables you to see how much they can borrow. We also have an ESIS generator and a straightforward online mortgage application system.
We believe that technology can be a big help but we also understand that providing easy access to capable experts is equally important. Not every case fits neatly into a standardised box so we’re very happy to answer questions and to discuss any unusual scenarios or unique challenges.
We're always looking for ways to say "yes".
Unlike many high street lenders we really understand the issues that many more mature borrowers face.
For instance, we understand that many people continue to receive income, often from several sources, after a "traditional" retirement age. They may continue in a part time job or act as a consultant alongside income from their state, private or occupational pensions.
We will consider all plausible income streams. For joint applications we may also be able to accept life cover as an affordability bridge upon the death of the first borrower.
We've pulled together a few short case studies to illustrate the wide range of scenarios where we've been able to say "yes" and help people live life to the full.