Equity Release Council comments on upcoming talks with CML about lending into retirement

Equity Release Council comments on upcoming talks with CML about lending into retirement

Nigel Waterson, Chairman of the Equity Release Council, comments on upcoming talks with CML about lending into retirement:

“Supporting the UK’s ageing population requires a joined up approach to address low retirement incomes and lingering interest-only mortgage debt, to name just two of the looming challenges. Property ownership is currently highest among people aged 55-64 [81%] and with the majority having net property wealth in excess of £125,000¹, these assets will form an increasingly important part of financial planning for retirement.

“The recent resurgence of equity release lending can only be helped by building bridges with the residential mortgage market to achieve better understanding and collaboration. The issue of lending into retirement has been heightened by MMR, and we are delighted to be working with the CML to build closer relationships with residential mortgage lenders.

“It is important we address a situation where many providers of mainstream mortgages are not currently inclined to lend to older customers. This requires a major cultural shift, without compromising the consumer protections at the heart of responsible equity release, including security of tenure and the no negative equity guarantee.

“Having established The Council’s Industry Government Forum to build relationships in Whitehall and Westminster, we also welcome the call from Legal & General for the government to actively endorse the benefits of equity release, and for new participants to support the next stage of market growth. In light of changes to the pensions landscape, we look forward to constructive discussions with all stakeholders to make this a reality and meet the growing need among UK retirees.”