Remortgaging and loans at or into retirement could be areas of growth for the mortgage industry, Jeremy Duncombe, director of Legal & General Mortgage Club and Housing has said.
Mr Duncombe said that these areas, as well as mortgages for the self-employed and interest-only mortgages, could be sources of growth.
He continued: “There are some opportunities out there, such as remortgaging. One way we are going to get the market to grow is to see what needs to change in the market place, and look at which sector is most underserved.”
|According to the CML, in February 2015 there were 21,500 remortgage loans advanced, down 16 per cent on January. These loans were worth £3.3bn, down by 20 per cent compared to the previous month.|
|In the same month, 40,600 house purchase loans were advanced, down 1 per cent compared to January 2015. These loans totalled £6.8bn, down 3 per cent on the previous month.|
He also urged mortgage brokers to embrace new technology and predicted greater use of video conferencing.
Earlier this month, Council of Mortgage Lenders chairman Moray McDonald argued that for many mortgage borrowers aged 65 or older, age was not a barrier to borrowing.
He said: “We really need to crack lending into retirement. By just after the end of the new parliament in 2023, 24 per cent of all adults will be aged 65 or older.
“The regulations here need to be fixed. We need to be sensible about the factors we take into account when assessing affordability, and we need to stop penalising people because they will not live forever.”
According to the CML, in 2014 borrowers aged 65 or older took out approximately 16,000 loans, worth roughly £1.3bn, which accounted for just 1 per cent of new lending.
The CML added that lifetime mortgages accounted for nearly 40 per cent of all lending to those aged over 65.
Wesley Davidson, a director of Bristol-based Fox Davidson, said: “The main problem is for lending into retirement. People with a pension can have a more stable income than those with a job. It is ageist.”