29 Jun

Lifetime mortgages prove popular

Lifetime mortgages prove popular

There has been an increase in demand from buyers wanting to find out more about lifetime mortgages and interest only home loans.

Key Partnership reports 58 per cent of estate agents have clients who want mortgage advice, but only 50 per cent believe they are well-placed to give advice.

In particular, older customers are the most concerned about mortgage debt issues, especially as they downsize to smaller properties, with 73 per cent of downsizers making a move to pay of their existing home loans.

The Council of Mortgage Lenders recently reveal the number of outstanding interest-only loans has declined by a third over the past five years, but it is unclear how many homeowners are clearing outstanding debts.

Will Hale, director at Key Partnerships, explained: “Selling up to pay off an interest only mortgage can make financial sense but it is worrying if older home owners are being forced to sell and are not aware of all their options.

“Equity release enables people to stay in their home and not have to downsize, or even in extreme cases lose their house. Some lenders are engaging with equity release as a solution and we would urge others to follow.”

He added estate agents are seen as a good place to go to seek financial guidance and they should be encouraged to work with a specialist in mortgage issues.ADNFCR-1222-ID-801837410-ADNFCR

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