CML delighted at FCA new leeway on hybrid lifetime mortgages
Published: 7 April 2016
The Council of Mortgage Lenders warmly welcomes the FCA's decision today to allow lifetime mortgage lenders to apply for a rule waiver to allow them to "switch off" affordability assessment for borrowers offering interest-charging lifetime mortgages that can convert to roll-up mortgages.
This addresses one aspect of change that the CML called for in its retirement borrowing report in December 2015.
Paul Smee, CML director general, said:
"This may look like a small change, but it is a really significant one that should allow the lifetime mortgage market to develop in a far more sensible and consumer-friendly way. It removes one barrier to the provision of sensible, safe and worthwhile lifetime mortgage products."
Notes to editors
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion.
2. The CML has identified lending into retirement as a major topic and area of work in 2016, and looks forward to working further with regulators and the industry on making further progress to open up this market in a way that successfully meets consumer needs.