Lenders review upper age limit for mortgages

November 18, 2015 by Brendan

Lenders

It may soon become possible for people aged in their 90s to be able to secure a mortgage, according to a report in The Telegraph.

During an interview with the chairman of the Building Societies Association, Dick Jenkins, the Telegraph was told that the age limit for older borrowers was being reviewed by 30 building societies, including the Yorkshire and Nationwide. By increasing the upper age limit to the 80s or 90s, it may help older people to assist younger members of the family who wish to get onto the housing ladder. As the average age of a first time buyer is 31 years of age, this move may help to make it easier for younger people to be able to secure their first home. As house prices continue to increase, the situation is likely to become more difficult.

Currently, lenders expect a borrower to have paid off their mortgages by the age of 70 or 75, but following the review, more lenders may be willing to consider other criteria, like insurance cover or pension wealth. According to Jenkins, the old image of a person buying a home with a mortgage taken out over 25 years before retiring is no longer a reflection of reality. Other views are that encouraging older people to move up the housing ladder may free up properties for first time buyers.

Whatever a buyers age is, whether a person is a first time buyer or a pensioner, it is imperative to seek advice before agreeing to a mortgage. An advisor who has taken a CeMAP course will have the required knowledge to provide advice.