Imagine having an immaculate credit record and a secure income, only to be locked out of some of the most competitive mortgage deals. Some older borrowers have been facing just this scenario.
‘Many have felt excluded from the mortgage market, as the criteria have tightened and lenders have typically imposed a maximum age of 70 or 75 at the end of the mortgage term. But for older borrowers with good pension income, why shouldn’t they be able to take advantage of today’s super-low interest rates?’, asks David Hollingworth, associate director at L&C Mortgages. ‘As more of us live and work for longer, it’s likely the need for mortgage borrowing will also be required into later life. Although it’s ideal to have paid off a mortgage by retirement age when income is likely to fall, some borrowers are perfectly able to service a mortgage,’ he adds.
Moneyfacts agrees: ‘It can often feel as though older borrowers are penalised just for their age, regardless of their personal circumstances.
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