As the campaign juggernaut continues to roll towards election day on May 7th, we have noticed an election promise that may have slipped under the radar of many voters, but it got us thinking.
The Conservative party says if it wins, it’ll appoint a minister to help stop mortgage lenders discriminating against older borrowers. Whatever your politics, it’s an issue that seems to be bubbling to the surface with more older borrowers looking to buy homes, but who face rejection by lenders.
When it comes to lending, shifts in the economy have moved the goal posts, potentially making older assessment criteria not as relevant.
Nowadays many people are only just buying their first homes in their 40s, and people are now working for longer. Yet, the maximum age at the end of the mortgage term remains between 70 and 75. This contradicts a lot of the changes happening among borrowers.
Many borrowers who have been rejected for mortgages and market experts claim that lenders are making decisions that are discriminatory and not based on affordability. In other words, people are being turned down purely because of their age, freezing out customers who may be very able to meet the payments. And there are increasing calls for more flexibility – not just from the Tories.
So, regardless of who wins the election, maybe we’ll soon see changes that’ll open up mortgages for more older borrowers.
If you don’t want to hang around, we can take a look at your situation and see what’s available for you right now.