Pressure to increase mortgage age limits
More providers are taking steps to allow people to take out a mortgage later on in life.
While the Mortgage Market Review resulted in some lenders restricted lending to borrowers where the term took them past the age of 65, some continued to allow loans into later life.
Dale Jannels, managing director of All Types of Mortgages, says his business has had relationships with a number of lenders, especially building societies, that have allowed unlimited maximum age for mortgages for some time.
What is new is high street lenders are hitting the press headlines now as they know how many people are coming to the end of ‘normal retirement age’, but who are carrying on working and still have a large debt to repay.
Mr Jannels says: “If the loan-to-value is good and affordability fits, people are working longer, living longer and therefore should be able to have a mortgage for longer if required.”
Rest here…
~
Most homeowners sell and move up or down within 7-8 years anyway. Makes no sense if other factors in line for a mortgage to discriminate based on age. In any case, seniors often have better ability to pay into retirement than younger families with children.