Equity release affordability rules should be eased to help more customers make interest repayments before switching to a roll-up arrangement, the Equity Release Council (ERC) has said.
It urged the Financial Conduct Authority (FCA) to make changes to help customers get a better outcome. The ERC said changes to the Mortgage Conduct of Business put in place following the Mortgage Market Review mean lifetime mortgages that allow clients to pay interest are subject to providers' affordability assessments. It said this was despite the fact that interest payments are always optional and clients are never at risk of losing their homes should they be unable to continue. Some people may now fail the affordability assessment or be reluctant to go through the process, the c...
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