More large lenders are predicted to recommend lifetime mortgages following a high street bank’s recent vote of confidence in the industry.
Industry specialists are warning however, that consumers are best served by seeking equity release advice that covers the whole of the market, rather than being restricted on choice.
Last month a major high street bank announced a deal, first of its kind, that will see its interest-only customers offered an equity release advice service when their term comes to an end.
The bank will soon be writing to its’ interest-only customers to suggest equity release as a solution to repaying interest-only mortgages which are coming to an end.
It is a major move for the equity release industry. It ultimately acknowledges that lifetime mortgages could be more suitable than a conventional mortgage for customers concerned about repaying their interest-only mortgages.
It has been predicted that the move will lead to more large banks recommending equity release to customers in the same situation, fuelling further growth in the sector.
Geoff Charles, CEO of Bower said:
“A major lender writing directly to their customers to suggest equity release as a solution to their interest-only time bomb is a major advancement. It goes a great way in helping to normalise equity release as an important aspect of later life retirement planning.”
“We have seen in recent months and years that when one lender decides to do something, it sets a precedent for others to follow suit. This move will undoubtedly inspire confidence in borrowers and lenders alike, which can only help to boost further sales and bring about more innovative products in the future.”
But the retirement income specialist also pointed out that customers should be offered whole-of-market advice on equity release.
Andrea Rozario, Chief Corporate Officer for Bower said:
“There are a lot of different solutions that could work for these people, and everybody is different. So the referral, in my view, should be to someone that can provide that independent advice.
“The lenders need to be linking up with distributors like ourselves that can offer a variety of solutions to their customers.
“The customers need to make sure they are getting impartial advice in this area in particular. We think the relationship should be between lenders and distributors.”
Could equity release solve your interest-only problem?
With so many options to choose from, seeking the guidance of an independent specialist in retirement lending who has access to the whole market of plans is vital.
During your free, no-obligation initial appointment, your Bower specialist will take the time to explain all the advantages and disadvantages to you so you fully understand everything involved.
You will be shown how equity release will reduce the value of your estate and how it may affect your entitlement to some state benefits. If you choose to go ahead, we can take care of everything for you with our personalised, award-winning service.
Speak to us today to arrange your free, no-obligation initial consultation on [tel].