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MMR puts focus on loans for the elderly

The latest Mortgage Market Review has prompted renewed interest in niche areas, including mortgages in retirement, which will have an impact on equity release.

Confirmation of the need for compulsory advice follows what Safe Home Income Plans introduced some years ago which has been an important factor in maintaining standards.

The detail around income in retirement and the servicing of interest is something which will perhaps provoke more debate in the months ahead.

The number of products that allow for interest servicing are limited at present, but these will become more popular as baby boomers head for retirement.

Like it or not, many lenders have an interest-only mortgage portfolio which will not be repaid at retirement. A lifetime mortgage will then be an option for clients wanting to reduce outgoings. The industry will be forced to innovate – with income verification at the centre not only of advice, but also of lenders’ responsibility.

All these factors will contribute to the growing importance of mortgages in retirement and, by default, a whole new way of looking at loans for the elderly.



NatWest slashing its BDM team is a kick in the teeth

The news last week that NatWest Intermediary Solutions, the intermediary arm of the Royal Bank of Scotland, is cutting its field-based BDM team from 40 to 19 was really dreadful. It is reducing its sales managers from four to two and cutting another six roles within its administration/business support team, although Its phone-based BDM team […]

Paragon lent £38.6m in Q4 2011

The Paragon Group of Companies, Paragon Mortgages’ parent company, lent £38.6m in buy-to-let loans during the final quarter of 2011, an interim management statement has revealed.

Law Society to step into Coventry mortgage arm’s insurance battle

The Law Society and the Solicitors Regulation Authority have been granted ’leave to intervene’ by the High Court in a case between Godiva Mortgages and Travelers Insurance company. Godiva, the intermediary arm of Coventry Building Society, is pursuing professional indemnity insurance firm Travelers for losses arising from alleged mortgage fraud. Godiva is just one of […]

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Johnson Fleming set to hold auto-enrolment support webinar

Two years since the process of auto-enrolment began, the looming re-enrolment deadline provides the perfect opportunity to assess whether the support you have in place, which may well have been hastily selected at the start, is fit for purpose. Johnson Fleming is holding a webinar on 10 September at 11:00 to discover the key issues and concerns you should consider when thinking about your current support options.


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