Oral Answers to Questions

Debate between Emma Reynolds and Harpreet Uppal

Tuesday 20th May 2025 Commons Chamber

[Harpreet Uppal (Huddersfield) (Lab)]

2. What recent discussions she has had with the Financial Conduct Authority on the adequacy of support from mortgage lenders for older people with interest roll-up lifetime mortgages.

[The Economic Secretary to the Treasury (Emma Reynolds)]

Lifetime mortgages have been regulated by the FCA since 2004. Those rules provide robust consumer protections, including requiring lenders to engage and provide tailored support to all their customers.

[Harpreet Uppal]

One of my constituents, a 96-year-old man, took out in 1990 what he thought was a £15,000 loan, but what 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?

[Emma Reynolds]

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.