Mortgages  

ERC in talks with CML to cure older lending problem

The Equity Release Council is set to enter talks with the CML to address the situation where many providers of mainstream mortgages are not currently inclined to lend to older customers.

Nigel Waterson, chairman of the Equity Release Council, said bridges need to be built with the residential mortgage market to achieve better understanding and collaboration.

Mr Waterson said: “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.

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“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.”