The Retail Distribution Review (RDR), Pension Freedom reforms and the Mortgage Market Review (MMR) together may have created a difficult environment for retirement interest-only (RIO) mortgages to flourish and without innovation could create issues going forward.
The RDR, for instance, resulted in many advisers deciding that they would advise on retail investment products e.g. pensions and investments, or mortgages and protection but not both. The Pension Freedom reforms have turned the retirement income market on its head. Before the reforms 10 annuities, providing guaranteed income for life, were sold for every pension income drawdown account opened. Now the opposite applies. […]
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