Saga comments on Lifetime Mortgages being considered by Santander

Thursday 30 October 2014

Commenting on Santander's confirmation that they are considering lifetime mortgages Jeff Bromage, chief operating officer for Saga Personal Finance commented

Saga comments on Lifetime Mortgages being considered by Santander

"Saga's previous research has highlighted the very real problem faced by a million older homeowners who are reaching the end of their interest-only period, only to realise that their endowment policies are unlikely to meet the cost of their outstanding mortgage debt.  A quarter of these even faced having to sell their family home in order to pay the debt, with the outstanding balance in the region of £49,000.

"There are a range of options that older homeowners are already likely to consider including, downsizing, but often the costs associated with this are prohibitive. We also have a large number of individuals contacting Saga's Mortgage Shortfall Solutions service for information on their options, many of whom are faced with a significant shortfall. However any additional products and services that can help alleviate the pressure for older people, who will be left with mortgage debt when their endowments mature but don't want to have to move from their family homes, will be warmly welcomed."

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