Is it Becoming Easier for Older Borrowers to Get a Mortgage?
2 minute read
Finding the right mortgage is a difficult task at the best of times. With all lenders having different rules and criteria it can appear a financial minefield, and one specific area that can present its problems to a growing part of the market is the age of a borrower. In recent years, many older borrowers have found it difficult to obtain the mortgage they require based on their age. Essentially, older borrowers have presented more of a risky option for lenders, with circumstances being ultimately more complex than a straightforward mortgage for a younger buyer, such as new rulings for affordability.
Times are Changing
Indications however, appear to show a significant change, with lesser-known lenders including private banks and smaller building societies offering mortgages to elderly people all the way up to their 90s. The change represents a highly positive move for older residents with a number of possibilities arising as a result. Older borrowers may wish to take a mortgage for a plethora of different reasons including providing for children and grandchildren, allowing them to purchase a home that might otherwise not have been able to afford. Some may borrow for their own lifestyle choices, perhaps to purchase a new kitchen or an extension to their home. Many older buyers may have found themselves in a large house, that was perfect for raising a family, but may now be superfluous for their needs.
The Expert’s View
With the implementation of the new rules following the results of the Mortgage Market Review (MMR), age has become an ever present area of discussion within the industry, and indeed between broker and client. With many people perhaps accepting the fact that they will be working to an older age, it seems slightly strange to some that certain lenders are now much more reluctant to take a mortgage term beyond state retirement age. Also with a good number of the market also having interest only mortgages that are now nearing the end of the lifetime of the mortgage term, it is refreshing to see a few lenders in the market taking a slightly more individual approach to borrowers circumstances when age is concerned, enabling these customers the possibility of continuing their loans for a prolonged period in their life. To discuss your mortgage options with Just Mortgage Brokers get in touch today.