For some people approaching state retirement age, mortgages can be an appropriate way of helping to manage their finances. The Government are determined, however, that lenders treat all customers fairly.
In 2004, the Government extended the scope of Financial Services Authority (FSA) regulation to include mortgages. The FSA’s regime requires lenders to treat customers fairly, and offers consumers protection by requiring that, for example, firms satisfy themselves that a mortgage commitment is affordable.
The FSA publishes guidance for lenders on how they should deal with mortgages that will run into retirement. This guidance is available on the FSA’s website at: