Defaqto lifetime mortgage research 'shows growth potential'

Date:Wednesday 25th August 2010
Author: Susanna Kavka

Safe Home Income Plans (Ship) has pointed out the growth potential for lifetime mortgages, following a study by research firm Defaqto.

Director general of Ship Andrea Rozario applauded the company for providing a "balanced review" of such products and claimed that it illustrated the sort of benefits consumers can enjoy.

She said: "Ship is actively working to grow the industry and we believe that as the funding issues ease, we will see the market expand and over time, new companies enter the sector."

Ms Rozario highlighted how lifetime mortgages can have comparable interest rates to shorter-term products, although she accepted that such arrangements may have slightly higher rates in general due to the additional perks customers enjoy, such as security of tenure.

Defaqto's study was published this week and showed that the gap between the interest charged on long-term fixed-rate products and lifetime mortgages has grown significantly over the past two years.