Secure Trust Bank has partnered with Key Retirement to extend its later life lending offering.
Key Retirement helps borrowers over the age of 55 with mortgage borrowing and will now assist Secure Trust with the distribution and design of its new proposition.
The products are also available through other partners.
The bank’s managing director Esther Morley took part in a Mortgage Strategy roundtable on lending into retirement in November, when she said that lenders had traditionally been fearful of entering the market.
“One of the biggest problems has been the fear factor,” she said at the time. “Lenders are concerned about how they can verify income post retirement, and are unsure just what the regulator will and will not accept in terms of income.”
However, the later life lending market continues to grow and was worth a total of £65bn in 2017. It is set to reach an estimated £142bn by 2027, according to research commissioned by More 2 Life.
“As we continue to grow and develop as a business, we seek not only partners who can effectively distribute our products, but also those who can assist us as we evolve our proposition,” says Morley.
“In the case of later life lending, mortgage providers have a responsibility to offer access to the right products and ensure services are available to meet the needs and requirements of older consumers. Key Retirement has long been established as an expert in this area and we look forward to working with them.”
Key Retirement chief executive Will Hale says: “Whilst equity release continues to grow in popularity and remains the product set that meets the needs of the majority of our customers, we are seeing an increase in enquiries from older borrowers who want access to more capital and are willing and able to make interest repayments on a conventional mortgage but are coming across barriers from their existing lender and other high street firms.”