UK Moneyman has received approval from the Financial Conduct Authority (FCA) to add home reversion plans to its permissions.
Home reversion plans are a type of equity-release scheme that lets people use some of the money that’s tied up in their homes.
The lender says home reversion plans became “sidelined as a solution of last resort”.
While a lifetime mortgage or retirement interest-only mortgage is said to be more suitable for most clients, UK Moneyman says people are missing out on fulfilling their retirement plans due to limited access to home reversion plans.
It suggests that while selling all, or part, of your home to a provider, feels “restrictive” people can still port the plan to another property.
UK Moneyman says as long as people don’t sell the whole property, they can leave an inheritance to loved ones.
UK Moneyman head of later life lending Dan Osman says: “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.”
