Confidence in lifetime mortgages rises

New research from Mortgage Express has revealed that broker confidence in lifetime mortgages is on the rise with nearly two thirds (63%) of broker respondents who haven’t yet advised on lifetime, saying that they plan to do so in the next year.

Encouragingly, nearly two thirds (64%) of those surveyed are expecting to see growth in lifetime mortgages over the next few years, with most of them (41%) anticipating that the market will ‘really take off’. A further 23% of respondents believe the market will grow but quite slowly.

Of the 36% who remain doubtful about the growth of lifetime mortgages, most (23%) cited consumer scepticism as a reason for this, with 13% voicing concerns about mis-selling claims.

A minority of respondents (36%) have no plans to advise on lifetime mortgages, citing a lack of specialist knowledge (13%) and insufficient remuneration in the sector (23%) as reasons for this.

Gus Park, director of intermediary sales at Mortgage Express, commented: “There is an ever-growing number of people in the UK for whom lifetime mortgages are a highly desirable option. The generation that is now about to retire has benefited from huge increases in property values, but may not have saved sufficiently for their retirement. For those people who want to access the equity in their property, yet don’t wish to sell their home and downsize in order to raise money, lifetime mortgages can be ideal.

“Forward thinking advisers are beginning to recognise this and realise that they can no longer ignore this growing sector. In time, those advisers who aren’t doing any lifetime business will have to seriously ask themselves why this is so. Advisers need to be properly skilled and qualified to sell lifetime mortgages, but even those who are not have the option to refer customers on.”