our new series of video debates with mortgage solutions covers key topics in the later life and Buy to Let lending areas
In our series of video debates, Darren Deacon, Head of Intermediary Sales, met with Nick Cheek, Managing Editor at Mortgage Solutions, Richard Merrett, Director of Strategic Relations at Simply Biz, and Greg Cunnington, Chief Operations Director at LDN Finance. The panel discussed all things later life, as well as the Buy to Let lending market, including the challenges, innovative products and future for both sectors.
Find out more about our Buy to Let offering
Find out more about our later life offering
Buy to Let lending - part 1
In the first of our Buy to Let series, the panel discuss the market, what the reality is for a landlord and what challenges they are seeing.
“Fundamentally, the UK does rely on the private rental sector. There is a need to have landlords in the market” Richard Merrett
"It’s a resilient market. It’s a market that has been through many turbulent times.” Darren Deacon
“But actually the reason for purchasing the property is still there. It’s still a good asset, its still got long-term growth, it still has strong rental income. Rents went up 11% in the UK last year. ” Greg Cunnington
Buy to Let lending - part 2
In the second video, the panel discuss what innovative products there are in the market and how they see the future of the Buy to Let market.
“We’re now seeing around 95% of our purchases on a limited company basis” Greg Cunnington
"We’ll see a bigger move to limited company in the buy to let space, but I definitely think it’ll be a significant part of the market for years to come” Greg Cunnington
“Something like that is an innovative product – it’s not just restricted to landlords but also for people who have a bit of spare cash.” Darren Deacon
LATER LIFE LENDING - PART 1
In our first video, we cover the state of the later life lending market, key opportunities and innovation. Whilst there is certainly a market, and one that's growing in size, is more education needed?
“It’s an underserved sector – the number of over 55 borrowers generated somewhere in the region of £28bn in 2021. Four out of five of those were mortgages.” Darren Deacon
“I always feel the sector needs to go a bit full Tony Blair in terms of education, education, education.” Greg Cunnington
"On the impact on tax and wealth planning... a lot of people are sat on a lot of equity and therefore actually making that part of the wealth assessment, people look at both in their retirement planning. But also provision against inheritance tax as well." Richard Merrett
Later life lending - part 2
In our second video, the panel discuss how a later life mortgage can be funded, and how borrowing in later life can help other family members and first time buyers.
"Typically we will take an earned income to 70, or 75 depending on individual circumstances. Beyond that we would be looking at pensions, be it a state pension, or a fixed pension. We deal with people that have pension pots, which is quite a unique angle that we take to this. We will take 80% of the value of the pension pot, and we can divide the mortgage term into that pension pot, so that we can increase the affordability to get the mortgage to fit.” Darren Deacon
“I think the mantra is spend your house not your wealth” Richard Merrett
“There are a lot of clients who get to the end of their mortgage at 74 years of age and are thinking ‘I can take additional money out and give that to my grandkids and get them on the ladder’. If we can have more of the advice element, I think there is a really big market opportunity there.” Greg Cunnington
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