Yesterday the FCA announced that later life firms will be able to ‘switch off’ affordability assessments when offering hybrid lifetime mortgages.
Retirement Advantage has praised the Financial Conduct Authority for listening to the industry on lifetime mortgage affordability.
Yesterday the FCA announced that later life firms will be able to ‘switch off’ affordability assessments when offering hybrid lifetime mortgages.
Alice Watson, product and communications manager at Retirement Advantage Equity Release, said: “We’re really pleased to see the FCA change their stance on affordability assessments when it comes to lifetime mortgages.
“It’s always been our belief that these assessments were an unintended consequence of the Mortgage Market Review (MMR) and added an extra and unnecessary step to the application process. We have been in conversation with the FCA for some time and it’s great that they have listened to the industry and reconsidered.
”The FCA’s decision is yet further recognition that the equity release market continues to grow and is a serious option for increasing numbers of over-55s across the country.
“The good news is that ultimately it is consumers who will benefit from this change, which will make access to lifetime mortgages more straightforward for more people and should allow providers to develop even more innovative solutions.”
