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Later life lending.

FACT: Over £1 trillion of wealth is locked into housing equity for retired people.

Recent changes to income in retirement including, the Freedom and Choice reforms are causing confusion and debate amongst industry professionals, politicians and retirees (and those approaching retirement) alike.

You may find customers who fall outside the high street lending world where Later Life Lending could create choice and opportunity. Some Later Life Lenders offer conventional mortgages but allowing the equity of the home to be used as the repayment vehicle. Later Life Lending is not just Equity Release, and by looking at all the available options you can assist your customers whether you are advising in this market or not.

A number of factors are adding to customers becoming increasingly aware of how far their incomes will stretch throughout their retirement and for some of these customers, options to increase their incomes are becoming much more attractive.

Later Life Lending can offer customers peace of mind. It can help with investment opportunities of their choice; whether that’s helping family members onto the housing ladder, purchasing a second property as a BTL or a sum of money to help with their enjoyment in retirement. With relatively quick access to what is potentially a sizable cash amount, Later Life Lending is fast becoming a viable alternative to other capital raising methods.

Lending choices have historically been hindered by age restrictions and limited affordability assessments. However we have seen a significant increase in recent years, brought in part by increased opportunities and product innovation which is making Later Life Lending more prominent in the marketplace. We have seen mainstream lenders adapt their Later Life criteria and increase maximum lending ages. At the same time we have seen specialist Later Life Lenders moving into the standard advice space for advisers, by developing more flexible and hybrid products for interest only customers.

Legal & General Mortgage Club is aiming to be a leader in this market, offering choice, and support for all our members.

Later Life Lending suitability
  • Helping children onto housing ladder
  • An Interest only mortgage, capital repayment date but insufficient funds to pay off the balance owed
  • Want to purchase ‘dream home’ with inheritance but cannot buy outright
  • Want to remortgage remaining mortgage balance to reduce rate and monthly payments
  • Has an income reduction following bereavement / divorce
  • Buying a holiday home
  • Using new pension freedoms to invest in a buy-to-let property
  • Wants to rightsize their property
  • Struggling to meet current mortgage repayments due to illness
  • Home improvements / adaptations.

Call MSS

If you are new to mortgage club and want to become a member or have any general queries please contact the Mortgage Support Service team on 01226 230504.

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Claim your proc fees early or on completion - something no other Mortgage Club can offer. Choose Legal & General Mortgage club as your preferred payment route, find out on about our lender proc fees.

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