A retirement specialist has introduced a new mortgage product which is aimed at people over 55 years of age. It is possible to have this particular product until the age of 95, proving that you are never too old to obtain a mortgage.
According to Guardian Money, the product has been released by Hodge Lifetime, and has been called the 55+ mortgage. One mortgage broker, John Charcol, describes the new mortgage as:
“a massive shot in the arm for the mature borrower market.”
The mortgage isn’t a type of equity release, but is a standard mortgage on which interest is repaid each month. The property continues to belong to the property owners. As most lenders generally only lend until the age of 70 to 75 years of age, the new mortgage product is a welcome boost for older borrowers.
As more people have children later in life, have student debts to repay and rising house prices, larger numbers are only able to buy a home when they are older, often struggling to find a product for people approaching retirement.
The criterion for the loan includes a property being worth between £170,000 and £1m, while the minimum that can be borrowed is £20,000 and the most is £500,000. However, the maximum age for applying is 85 years old, where it is only possible to borrow up to 60% of the property value.
Mortgage advisers who have taken a CeMAP course will be given the crucial information about the product, so that they know who will be the most likely to benefit from the mortgage.
