Marsden BS supports the new FCA announcements
27 March 2018
The Financial Conduct Authority have recently announced their proposed changes to later life lending and Marsden Building Society, who have been offering solutions to this audience celebrates a wider range of options for customers.
Rob Pheasey, Chief Executive of Marsden Building Society says;
"We're delighted with the decision made by the FCA which is encouraging more product choice and increased innovation in the later life market. It's important for customers to have choices around their mortgage commitment into retirement as lifetime mortgages are not always the solution for everybody."
Rob Pheasey continues, “There is a growing need to support borrowers who wish to stay in their home in retirement. For many customers, they are simply looking to extend their current term, often modestly, into early retirement and have found this challenging with their existing lenders. Customers will still need to be able afford the ongoing interest payments, but loans will ultimately be repaid through the sale of the property.”
Recognising the importance of intermediaries and the need to raise awareness of the retirement lending solutions available, the Society has supported a number of its network partners with specific later life events and content to help building awareness in this market.
John Coffield, Head of Mortgages from Paradigm comments, “We recognise that to support this market, intermediaries and lenders must work together. The market is set to grow and banks and building societies must be in a position to respond. We welcome the announcement from the FCA for later life lending supporting the reintroduction of interest-only mortgages for the elderly which run until the borrower’s death or when they move into residential care, it widens the product support for client’s who need support in these situations.”
Both lenders and intermediary networks must work to build awareness around the options available to ensure that intermediaries and their clients have access to all the solutions.
