Lifetime mortgages receive broker boost

Published: February 26, 2008

Lifetime mortgages are set to increase in popularity as large numbers of brokers intend to expand into this market.

According to research from Mortgage Express, 81 per cent of mortgage brokers have ambitions to expand into the lifetime mortgages market.

It comes as the market remains buoyant despite recent troubles for the rest of the mortgage market following the global credit crunch.

A total of 22 per cent of brokers questioned said that the global credit crunch has had an impact on the way they do business, with lifetime mortgages benefiting.

"Forward-looking brokers are beginning to realise that they shouldn't ignore this growing sector, particularly in light of the credit crunch which has encouraged many intermediaries to look at ways of expanding their offering to both new and existing customers," commented Kirtsy Jackson from Mortgage Express.

"As brokers seek to develop their business in today's challenging environment, equity release provides them with an opportunity to extend into a market which is being driven by a baby boom generation many of whom fear they do not have adequate retirement provision.

"Lifetime mortgages allow customers to release money tied up in their property, without fear they may end up in negative equity," she added.