Lifetime mortgage market blooms

Tuesday, 26 February 2008 12:00

Borrowers searching for lifetime mortgages will receive extra guidance in future as it emerged more brokers plan to offer advice on the products.

Research by lender Mortgage Express shows 81 per cent of brokers who did not currently provide advice on lifetime products, planned to offer the service next year or further into the future.

And, of that figure, almost a quarter cited the credit crunch as their main motivating factor for doing so.

It would appear the buoyancy of the lifetime market amid the recent economic uncertainty has made the sector more alluring to brokers.

Kirsty Jackson, head of lifetime mortgages at Mortgage Express, said: “Forward-looking brokers are beginning to realise they shouldn’t be ignoring this growing sector, particularly in light of the credit crunch, which has encouraged many intermediaries to look at ways of expanding their offering to both new and existing customers.”

The mortgage lender said the lifetime, or equity release, market is now being driven by the baby boom generation, many of whom are fearful they do not have enough money for their retirement.

The lifetime market, it said, provided these people with a way of releasing money tied up in their property to afford more financial freedom during retirement.

More and more brokers were recognising this and their arrival to the market would provide more choice to people looking for help in finding the right equity release product.

Ms Jackson added: “Be it to enhance their lifestyle, provide cash to meet basic living needs or to perhaps help their children onto the property ladder, lifetime mortgages provide solutions and opportunities for customers and intermediaries alike.”

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