Brightstar Financial has launched a guide for brokers to better advise their clients on interest-only mortgages and later life lending.
The guide comes after predictions that over the next 30 years, 2.6 million interest-only mortgages will be due for repayment, with an anticipated peak of £33 billion worth of interest-only mortgages due for maturity in 2032.
Seven in 10 interest-only mortgages are held by customers over the age of 45 and it is estimated that half will have a shortfall.
Brightstar’s guide aims to help brokers recognise the opportunity, identify those clients who may be affected and suggest steps that advisers could take to help find a solution.
Michelle Westley, head of marketing at Brightstar, commented: “In the coming years, many more borrowers are going to find that they get to the end of their interest-only mortgage term without a plan as to how they repay the balance, which presents brokers with a great opportunity to advise their clients on the best solution for their circumstances.”
She said that fortunately, most of those homeowners will have significant equity in their property and the options for releasing this equity are becoming more competitive and accessible.
“Our guide will give brokers information on how to recognise the opportunity and make the most of this growing market,” she concluded.