FSA to examine lifetime mortgage products

The FSA has flagged up lifetime mortgages as an area that requires special investigation.

Speaking at the Council of Mortgage Lenders’ annual conference last week Clive Briault, manager of retail markets at the FSA, told delegates that as well as delving into the sub-prime sector, lifetime mortgages were near the top of the list as a priority ‘higher risk’ area.

He says: “We will be paying particular attention to these products within our work on financial promotions and product disclosure.

“I know that the CML has been doing good work with lenders who offer these products to raise standards ahead of regulation.”
Dean Mirfin, business development director at Key Retirement Solutions, says: “I certainly think lifetime mortgages is an area that needs some scrutiny, purely because it hasn’t been looked at before. It’s an area that needs to be properly understood and we would welcome the investigation.