The mortgage market is due to potential changes because the Financial Action Bureau (FCA) has been reviewing strict loan rules implemented since 2008.
In recent letters, the FCA acknowledged the need to simplify regulations and was able to balance the borrower and the expansion of access to housing ownership. 
One of the postponed areas for reconsideration is the use of a mortgage with only interest. These remain technically available, but with strict standards, most borrowers have become unable to access. Many of this came from past scandals, such as incorrect sales of donations, and created important consumers' distrust.
However, today's mortgage market is a very different place. The industry has evolved, more specialized and transparent. Appropriate protection means, especially for borrowers over the age of 55, can play a valuable role in interest only. Many of these customers are financially safe and responsible, indicating powerful opportunities for lenders who want to accept this niche.
To enable this product to work effectively, it is necessary to incorporate a safe guard into the process. For example, requesting an essential face -to -face meeting with a lawyer before completion (standard for lifelong mortgages) can guarantee that the borrower fully understands his commitment. In order to protect customers, in order to protect customers, it is important to be able to freely select solutions that meet your needs.
Another potential profit is to deal with only retirement allowances (Rio) mortgages. Currently, joint applications often decline under strict and affordable rules, and many elderly couples cannot access this product.
It is difficult to avoid the perception that elderly borrowers are sometimes unreasonably disadvantaged in the loan market. By carefully adjusting the policy, we can correct this imbalance and provide customized products that truly meet the aging population needs.
The willingness to reconsider FCA's outdated policies open a door for innovative thinking. By combining robust safe guards and flexible standards, lender and broker can provide solutions to enlarge access and protect the borrower. Lending only with interest can bring great value not only to the borrowers but also to the entire mortgage industry.
Malcolm Davidson is a Managing Director of Moneyman in the UK
