PODCASTS - with Mortgage Solutions

Part 1: The market is ‘awakening’ to wider range of later life lending products

Stuart and Neil join Anna at Mortgage Solutions to talk about developments in the later life lending market. The mortgage market is awakening to the fact that there's a wider range of later life lending products, like standard Interest-Only and Repayment mortgages, which can be an alternative to equity release or RIOs.

Later life lending is usually seen as borrowers over the age of 55 years, but Neil comments, “at that time, products like RIOs or equity release don’t work very well for customers, primarily because, believe it or not, they’re too young”.

At Family Building Society, we lend up to age 95 on a Repayment mortgage and to age 89 when the loan commences for Interest-Only. Stuart adds that some clients like the “tried-and-tested repayment mortgage to age 95 that will help minimise the monthly payments and hopefully make it much more palatable for the older borrower who might want to pass on their home as inheritance to their loved ones”.

PART 2 - Later life innovation sees the ‘transition’ of high street Interest-Only to later life lending

In part 2 of our podcast series,  Stuart and Neil delve deeper into the growth of the later life market, discussing how standard mortgages can be used in later life lending, and how they can help with affordability. They also touch on how Joint Borrower Sole Proprietor mortgages can be used when support is needed for affordability - either to help younger family members or to assist older borrows themselves.

Neil Cadwallader comments that going down the Interest-Only route in later life is “not a broadly understood and followed path at the moment”. It's important that brokers and clients alike know what options are available, as clients “get to a certain age and they think that’s it, game’s over” and they have to go down the equity release route when actually standard mortgages are available.

PART 3 - Buy to Let properties not leaving the market but 'changing hands'

In part 3 of our podcast series, Neil explains that Buy to Let properties are not leaving the market but are 'changing hands' to professional landlords. He mentions that older landlords are gifting equity to younger family members within limited companies, meaning the properties are 'just changing to more tax beneficial status but within the professional landlord community'.

Stuart also adds that the BtL market will 'always survive' because there will 'always be demand' for rental properties. He outlines our flexible lending criteria, stating 'our primary concern is could they cover rental voids', and reassures that for professional and serious landlords, 'we won't stress their background portfolio. We only look at whether it's self-financing in its own right'. He also mentions that Family Building Society are expanding into HMO lending and are accepting applications from expat borrowers in over 40 countries.