Older Borrowers Urging Financial Advisers To Consider Their Needs
There is an ongoing petition for financial advice website and financial advisers to consider the increasing number of homeowners and borrowers that are in the older age range. Nowadays, financial institutions are only offering their advices to a specific financial branch – investments, pensions and mortgages. It is not common to see financial advisers that offer services for all three while expecting holistic solutions.
According to the Intermediary Mortgage Lenders Association (IMLA), there are an increasing number of homeowners that are over the age of 65 years old with their assets completely relying on their properties. This entails that their property wealth should be factored along with their pension pots in order to determine their financial status in the future.
In a report released by the mortgage lenders’ trade association it tackles the issue of product innovation which can be too fast for the current market. Financial experts believe that the increasing number of borrowers until their retirement age will have a future impact in the system especially in terms of financial advising.
IMLA revealed that the population of homeowners from the age of 65 has risen by 52 per cent in the last two decades which puts it at six times the average in the United Kingdom. The growth rate of the same population is calculated to be almost double.
Based on the report, 69 per cent of the total housing equity in the United Kingdom now belongs to homeowners that are 55 years and older. It is also projected that the mortgage debt of the retirees could be twice as much when 2030 comes.
Furthermore, the report indicated that over 40,000 homeowners at the age of 65 and above hold loans that are interest-only and maturity due set by 2032. Majority of these borrowers will require extension for their mortgage in order to remain in their homes while they are in the age of retirement.
In conclusion, the report said that financial advice website and professional advisers should keep in pace with the evolving needs of the older population considering that the yearly mortgage lending rises by 29 per cent and many products are being introduced in the market.
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