Brightstar launches guide to help brokers tackle interest only timebomb
Brightstar Financial has launched a guide to interest only mortgages and Later Life Lending to encourage brokers to help more of their clients by advising on an appropriate solution.
Over the next 30 years, 2.6 million interest only mortgages will be due for repayment, with an anticipated peak of £33bn 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 helps brokers to recognise the opportunity, identify those clients who may be affected and suggests steps that advisers could take to help to source a solution.
Michelle Westley, pictured, Head of Marketing at Brightstar Financial, says:
“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. 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.”