Mortgage Loans and the ageing of the Punk Generation
The Punk Generation were recently described in the financial press as entering the "last time buyer" stage of their lives. Now the FCA, at the annual conference of the Council of Mortgage Lenders, is saying that ways to finance the needs of the ageing population need to be found, which, given the difficulties placed in the way of anyone over 50 by the tightening up of mortgage lending rules, might be seen to be a bit rich! Whatever happens, there is a lot to think about, plan for and regulate.
According to Davidson, over the next 25 years the number of people aged over 80 will more than double, so there will be increasing demand for a broader range of products to meet their needs.
He pointed towards the increasing number of retired people already taking out new mortgage products.
"Now people aspire for their home to provide finance for the long term, pay for a deposit for their children and grandchildren, and inheritance. Sometimes all simultaneously.
"There is, I believe, the opportunity for a flexible range of products that work around people’s lives as well as the underlying asset.
"And we at the FCA are keen to support innovation in this area that is in the interest of consumers.””