More lenders are starting to offer mortgage products to older borrowers, as many over the age of 55 struggle to find a suitable home loan.
Many lenders are reluctant to lend money to older borrowers as their income will generally fall as they approach retirement and beyond. However, a number of banks and building societies have increased their age limit to the mid-eighties, or even nineties in some cases.
A mortgage is usually only granted to those who are able to pay off the loan by retirement age. However, retirement income is often a more secure option than employment income, as income following retirement is usually guaranteed.
For many lenders, the maximum age for a mortgage is either 70 or 75. Many borrowers over the age of 55 feel that they are being discriminated against, with limited options for a mortgage.
Among those lenders who are willing to lend to older borrowers is Marsden Building Society and National Counties Building Society. Bath Building Society looks at every case on its own merits, with no maximum age for lending. Deals are still competitive, with a fixed rate of 2.99% offered by Marsden Building Society for two years, for those borrowers who are aged up to 85 years old.
As with all mortgage applications, approval will depend on affordability tests, while the Loan to Value ratio will influence the deals which are offered. CeMAP trained mortgage advisers know which lenders are offering mortgages to older borrowers, and the special rates they are offering.
