The launch last week of what has been quickly touted as the never-ending or inter-generational mortgage by Kent Reliance Building Society was always likely to provoke debate.
Artificially, there are several potential benefits to such a product. Borrowers, in theory, never have to pay off the original loan and with house prices continuing to rise beyond the amounts borrowed, such a mortgage would only become a liability to the lender if house prices were to go backwards - something most people seem to accept is extremely unlikely in the long-term. Thanks to the increase in property values inheritance tax has become a real issue for many homeowners as well, with Kent Reliance claiming one of the attractions of its new product is the possibility the mortgage can...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
