Many high street lendersapply a maximum age of between 70 -75. And, although age is never cited as the reason for turning down an application (it’s illegal for lenders to discriminate against borrowers on that basis), some older borrowers can still find themselves locked-out because they don’t meet their lenders’ narrow ‘affordability’ criteria.
For example, it’s not uncommon for over 60s with interest-only mortgages to find themselves assessed on repayment terms, even though they can comfortably meet the monthly payments.
Furthermore, changes to working habits and life expectancy mean that many people still have a good income well past pensionable age.
At Limetree, we understand this and don’t believe in taking a one size fits all approach to mortgages. We have access to a wide pool of lenders (many of them not on the high street) who are willing to take our clients’ individual circumstances into account.
The good news is that more lenders are starting to reflect the changing times by offering products that better meet the needs of this demographic.
Legal and General have recently announced plans to launch a new hybrid mortgage product which will give older borrowers the flexibility to take loans out into retirement. Part lifetime mortgage, part standard repayment, it will allow borrowers to flex their payments to suit their present circumstances with built-in options to help them cope with any future changes to their finances.
With the number of people aged over 65 in Britain set to nearly double to 19 million by 2050, this is a market that lenders can no longer afford to ignore.
We’ll keep an eye on the latest deals. But if you’re concerned your age may be working against you when it comes to taking out a mortgage – get in touch.