I think most building societies embrace innovation with enthusiasm. So well done for coming up with something new. No, I mean it.
What does confuse me is the aim. Apparently it is to help first-time buyers (FTBs) and people wanting to avoid inheritance tax (IHT). Surely there’s little difference to a FTB in having an ‘inter-generational’ mortgage and a repayment over, say, 45 years?
And isn’t slashing IHT the job of the lifetime mortgage (for which I’ve given up a day of my life to pass the exam)? And while we’re at it, last time our lovely compliance lady came in, wasn’t writing a mortgage past normal retirement date (NRD) punishable by being ducked in the local river?
Ah, I hear you cry, but it is going to do financial checks every few years. The problem as I see it is by the time New Labour has the state pension age at 120, there’s a small chance I won’t want or be able to work. Is it at this point the Kent Reliance will tell me I need to repay my mortgage? Perhaps it should build in a guaranteed conversion option at 65 to a roll-up mortgage product?
Now, I know the gold hoarding, Toblerone-eating, Swiss love this type of product, but remember, everything over there is either illegal or compulsory.
Paul Ormerod
Financial planning associate
Caliber Financial Associates Limited
