UK Moneyman Receives FCA Approval for Home Reversion
02 March 2023
UK Moneyman Ltd is pleased to announce that, in addition to wide-ranging later-life lending offerings, home reversion plans have been added to their permissions at the FCA.
Dan Osman, head of later life lending states that “Although home reversion has become a niche product over the years, it is still the most appropriate solution for some clients. In a market dominated by the lifetime mortgage, we feel that it is important that we constantly strive to offer the widest choice of later life lending solutions available to ensure that the product fits the client – not the other way around.”
With the advent of lifetime mortgages (where clients retain 100% ownership of their home with a mortgage secured against it which only becomes repayable on death or entry into long-term care), the humble home reversion plan became sidelined as a solution of last resort to the extent that many firms no longer advise on them.
It is certainly true that a lifetime mortgage or retirement interest-only mortgage is more suitable for most clients. However, there are still people missing out on fulfilling their retirement plans due to limited access to home reversion which could provide the solution in some cases.
The fact that you sell all, or part, of your home to a provider, feels restrictive to some although, in many cases, you can still port the plan to another property and, as long as you don’t sell the whole property, ensure you leave an inheritance to loved ones. It is often true, also, that home reversion providers are potentially able to consider properties that might fall outside standard, strict lending criteria.
