There is concern that the mortgage industry in the UK is not responding to the ageing population and the need for more elderly people to borrow funds on their properties. The tightening of the lending criteria means that many are barred from the "ordinary" mortgage by age alone and there is a growth in the numbers taking equity release. However there are also a growing number purchasing a second property as a buy to let pension investment. The CML are currently trying to address this matter so we await to see if they can effect a sea change in the attitudes of the big lenders.
We are living longer, our family structures are changing, we are marrying later and we are working longer. At the same time, financial insecurity will result in more people needing to borrow more and later in life. We should be particularly worried about those retirees with interest only mortgages but no linked investment,’ he pointed out.He explained that whilst the introduction of pension freedoms could be a boon to the buy to let sector, older people should make sure they take advice before making the jump and with older people holding almost £1.4 trillion in wealth in their homes, equity release is going to be an attractive way of supplementing a pension for many.‘The industry needs to ensure that the income poor asset rich pensioners are well served by this market.