Calls made to boost retirement lending

Calls made to boost retirement lending

An equity release specialist has called for innovation in retirement lending to meet the needs of people aged 55 and over.

Stuart Wilson, marketing director for More 2 Life, demanded innovation following the pension reforms.

He said: “Retirement lending has to change as well to address the need and desire among older customers to have access to credit and not be turned down simply on the grounds of age.

Article continues after advert

“There is real demand for regulated products that address this demand and it needs to expand beyond the growing markets such as equity release and secured lending.”

In April Fos upheld a client complaint against HSBC after the bank denied a couple in their 40s a mortgage on the grounds of age.

Others have campaigned on behalf of the over-55s. Newly appointed pensions minister Ros Altmann called for changes to keep over-55s working when she was the government’s older workers champion.

Duncan Howorth, chief executive of JLT Employee Benefits, has asked Baroness Altmann, in her new role, to promote use of the pension flexibilities in areas such as buying a house.

Adviser view

Andrea Rozario, chief corporate officer for Essex-based Bower Retirement Services, said: “Because of the mortgage market review there have been restrictions on the older generation, but there is greater demand for things such as lending in retirement.”