Commons Sense

House of Commons · Ministers' Questions

Lifetime Mortgages: Support for Older People

Tuesday 20 May 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Harpreet Uppal inquired about a constituent who took out a lifetime mortgage in 1990 and now owes over 52,000 despite making significant payments.
  • Dr Al Pinkerton raised concerns about pensioners reaching the end of their mortgages with outstanding borrowing and struggling with later-life lending criteria.
  • The Minister offered to meet Harpreet Uppal to discuss her constituent's issue further and stated they regularly discuss mortgages with lenders and the Financial Conduct Authority.

Topics (select to filter)

Questions & Answers

Q1 Harpreet Uppal Lab Huddersfield
Employment Benefits & Welfare
Context

A constituent, a 96-year-old man who took out an interest roll-up lifetime mortgage in 1990 and now owes over £52,000 despite paying £40,000.

Question

One of my constituents, a 96-year-old man, took out in 1990 what he thought was a £15,000 loan but was actually an interest roll-up lifetime mortgage. Despite paying £40,000 over the years, he now owes over £52,000 due to compound interest. He has been denied redress by the financial ombudsman due to time limits and my team has also contacted the FCA and the lender without success. My constituent is now left to deal with the consequences. Will the Minister meet me to discuss this case, and how we can better support other people who have been mis-sold those products?

Answer from Emma Reynolds (Economic Secretary to the Treasury)

I am really sorry to hear about the circumstances that my hon. Friend’s constituent is facing, and I would be happy to meet her to discuss the issue further. Lifetime mortgages are complex financial products, and I suggest that anyone considering equity release seeks independent financial advice to help ensure those products are suitable for their needs.

Answered
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Q2 Al Pinkerton Lib Dem Surrey Heath
Housing Benefits & Welfare
Context

An increasing number of pensioners are reaching the end of their mortgages with outstanding borrowing and finding themselves unable to meet later-life lending criteria, a trend likely to increase due to rising house prices.

Question

An increasing number of pensioners are reaching the end of their mortgages with outstanding borrowing and finding themselves unable to meet later-life lending criteria, and this is likely to become even more prevalent in years to come as house price rises continue to outstrip earnings. What discussions is the Minister having with lenders and the mortgage industry about expanding those criteria and giving hard-working pensioners who might otherwise be forced to seek council support the opportunity to remain in their own homes?

Answer from Emma Reynolds (Economic Secretary to the Treasury)

I thank the hon. Gentleman for raising this important issue. I discuss mortgages with lenders and, indeed, with the Financial Conduct Authority on a weekly basis, and I will ensure that I pass on his comments.

Partly answered

How: Under Review

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