Non-standard mortgages customers are suffering from a lack of clarity in the UK mortgage market, the IMLA has warned.
The report examines the impact of post-financial crisis mortgage regulation on the growing army of those who fall outside the traditional core of salaried borrowers with no credit blemishes who can pay off their loans before a set retirement date.
IMLA argues that people seeking a loan which is likely to remain outstanding beyond their normal retirement age are suffering from a lack of clarity in the Mortgage Market Review (MMR) rules, which is resulting in older borrowers being frozen out.
“Uncertain pension incomes make it difficult for lenders to assess mortgage affordability in later life, and this may become even harder when the new pension freedoms take effect next year,” explains
Peter Williams, Executive Director of IMLA.
“To avoid a situation where regulation brings about the extinction of mortgage terms that stretch into retirement, we need clarity and confirmation about where the boundaries of responsible lending truly lie.”
Source: The Movechannel