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Cautious lenders give little lifetime mortgages

05/02/2007

Today the lifetime mortgages has increased to 23,786 (2006) from 23,215 (2005) also the size of the average loan decreased from 45 thousand pounds to 41 thousand, these figures were put forward by the CML firm, Council of Mortgage Lenders.

Throughout the year the size of the average loan decreased, nearly up to 38,400 pounds by December, this has been the lowest since 2002.

"The trend towards smaller loan amounts on lifetime mortgages suggests that lenders and intermediaries are being careful to ensure that people are only borrowing what they need," Said Jackie Bennett, CML head of policy.

FSA regulations today are tightened up, the lender behaviour should now help build confidence, Ms Bennett spoke.

"Specialist advisers on lifetime mortgages are clearly beginning to adopt good practice," Commented Ms Bennett.

Lending and borrowing is based today on background concerns, before it was easier for people to take out a loan nowadays things have become more strict.

Just a few days gone, a survey produced by Which? Cash concluded that 1 in 3 older people were worried that they may not have enough cash flow to enjoy a decent retirement plan.


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