Will lifetime mortgages get a funding boost?

Lifetime mortgages may benefit from a rise in funding following the emergency Budget.

The Intermediary Mortgage Lenders Association (IMLA) has called on the chancellor of the exchequer George Osborne to recognise the problems plaguing the housing sector.

IMLA is lobbying for a cash injection from the government to help the recovery of the property and mortgage market.

Peter Williams, executive chairman at IMLA, was worried the emergency Budget would only spell out further cuts to control Britain's spiralling financial deficit.

He said: "We need clear and decisive action on mortgage funding. The list of problems the housing sector faces is long and, setting aside the lack of mortgage supply, it includes stretched affordability, low numbers of first-time buyers and falling housing supply and levels of home ownership.

Lifetime mortgages and home income plans can become more expensive following recent reforms to the banking sector, which are expected to significantly raise the costs of financial products.

Ashall Glover Financial Services lifetime mortgage advisers

Posted by Louise Tilston