Key comments on Building Societies Association's Lending into Retirement Report

13 November 2015

Dean Mirfin, technical director at Key Retirement, comments on Building Societies Association's Lending into Retirement Report

"Advice and innovation are crucial to addressing the growing demand for lending into retirement and it is encouraging to see building societies taking up the challenge.

"One of the key points made in the report is that "lending close to or in retirement is not always riskier - just different", and the report recognises how lifetime mortgages can make a major contribution highlighting how customer needs change as people get older. Capital and interest mortgages are suitable when people are working but as they retire the ability to switch to interest-only or be able to withdraw equity becomes more important.

"There has to be more interplay between product design, innovation and most importantly the advice provided, especially as people age. Borrowers cannot move between the phases of accumulating and decumulating housing equity without the right advice and in addition, the structure of each type of mortgage is different and shouldn't just morph from one product type or phase to the next. Customers will always require quality advice and at the right point in time. Fulfilling the journey outlined in the report will also require different types of funders to collaborate more on the stage solutions.

"We recognise the importance of working alongside the BSA and others to ensure that access to lending into or in retirement is available and borrowers don't suffer to facilitate ease of access."