A new equity release provider is due to be launched into the market.
Having received full approval from the FCA, Responsible Lending will offer various lifetime mortgage products to be sold through equity release qualified mortgage brokers and financial advisers.
The company’s target market includes those aged over 55 who have found themselves stuck in mortgages, as well as the traditional equity release customers. They also aim to appeal to defined contribution pensioners who are seeking to supplement their state and personal pension incomes.
Keith Haggart has been appointed as Responsible Lending’s managing director and is a former MD of Lifetime Mortgages at Prudential, as well as a Director of Lifetime Mortgages at Just Retirement. He was also a previous director of Safe Home Income Plans, now the Equity Release Council.
He commented on the gap in the market that the company aims to fill as seeking to address the flaw in the mortgage market where retiring customers are concerned.
“Responsible Lending was founded because we identified a space in the equity market for an innovative lender that focuses on the issues faced by those aged 55 and over. We believe we’ve built an exceptional lending platform and our highly experienced management team has designed products that take into account extensive market research on what our customers actually want to create a later life lending solution.
“Recent regulation swings have made it financially tougher than ever for those in later life. Legislating for more pension freedoms was the right thing to do but it has left many wary of running out of money in retirement. This fear has affected lifestyles alongside savings and spending habits. If pension freedoms weren’t difficult enough to manage in retirement, there is the added complication of many requiring a mortgage into later life.
“The mortgage market has some fundamental flaws when viewing customers in retirement, which we are seeking to address with our products. We have looked at the wider regulation and economic landscape and designed a range of products that hand the power over the wealth in their property back to our customers.”
