Aldermore will be making changes to its lending into retirement proposition because of an aging population, Charles Haresnape has said.
The group managing director for mortgages at Aldermore said the issue of lending into retirement would be a prominent one during 2017.
He said: “I think lending into retirement is an underserved market. The population is aging and the regulator itself is looking to see more lending in that segment.
“We lend up to the age of 75 but that’s not that old nowadays.
“We are going to look at that whole retirement piece in 2017. We will be coming out with something more attractive and suitable for that market.
“It is still a work in progress but it is about the product types, the criteria, increasing the maximum age and how we would assess income into retirement.”
The Financial Conduct Authority has warned that the number of people aged over 80 is set to more than double in the next 25 years, which means there is an increasing demand for a broader range of products to meet these changing needs.
With a 51 per cent increase in the over-65 population projected between 2010 and 2030 - and a 101 per cent increase in the over-85 population – a report by the Council of Mortgage Lenders concluded it is vital to promote sensible and suitable mortgage finance to support both the aspirations and the social care costs of older home-owners.
