A recent study has revealed that millions of people aged 55 and above have struggled to secure a mortgage, resulting in them paying extra for inappropriate mortgage deals, or living in a house which is no longer suitable.
The study, conducted by Key Partnerships, approached estate agents to ask for information about people wanting a mortgage at the age of 55 or over. Most of those questioned stated that the harsh lending criteria meant that a large number of people in this age range were finding it difficult to secure a mortgage, while 58% stated that the mortgage market wasn’t suitable for their requirements. As 40% of people who are aged 55 or above are still paying a mortgage, this is a problem for millions.
Age has been a problem for borrowers who are aged 40 and above for a while, with some people trying to get a mortgage at the age of 40 being rejected as they will still be paying it when they retire.
Although the mortgage market has been competitive in recent months, there are still older people who have been left paying the higher Standard Variable Rate. In some cases, the tougher lending criteria has meant that those who want to move to a retirement property, have been unable to do so as they are unable to borrow more money to pay the extra cost of a bungalow in an attractive part of England.
Mortgage advisers are given this information during CeMAP training so that they are able to assist those who may be experiencing difficulty.
