The BSA responds to the FCA's 'Ageing Population and Financial Services' paper
The BSA welcomes the publication of the FCA's Ageing Population and Financial Services paper today.
It represents an important first step by the regulaotr in encouraging the lending community to respond to the changing demographics by broadening the range of products available to those in or nearing retirement.
It also recognises the challenges of providing the services and support the older customer needs to continue to run their finances while also protecting them from financial crime and abuse.
The paper highlights the stark demographic changes we face as a country and some of the products gaps that currently exist, particularly in later life lending. It also builds on the market leading work and analysis carried out by the BSA and its members since 2015.
Paul Broadhead, Head of Mortgage Policy at the BSA said:
"Building societies have been at the forefront of driving change in the provision of financial products for the need of older consumers. Over the past couple of years, the number of societies offering mortgages that will extend into a borrower's eighties and beyond has doubled.
"But this market will continue to grow dramatically and as we have repeatedly argued, other lenders will need to follow suit. The FCA cites research in its report that the share of borrowerrs aged 5+ is set to go from 1 in 6 currently to 1 in 4 by 2050. A third of babies born today can expect to celebrate their 100th birthday.
"Earlier this year the BSA commissioned research from the International Longevity Centre which found that mortgage debt in the over 65s is set to almost double, to around £40bn by 2030. It is refreshing to see a regulator committed to looking long-term at the societal changes occurring with the way we buy our homes - and the ageing population more broadly. The regulator has already taken welcome steps in consulting on changes to Retirement - interest only mortgages that is likely to help many borrowers.
"We will continue to work with the FCA and other stakeholders such as the Treasury, Age UK, mortgage intermediaries and the equity release sector through the Retirement Cross-Industry Group which the BSA chairs twice a year."
