A recent report states that millions of homeowners are entering retirement with a mortgage. As families are moving up the property ladder much later in life, home owners are now left paying their mortgage well into retirement.
In 2006, around 25% of mortgages lasted beyond the age of 65, while that figure has risen to over 40% today. According to experts, that figure isn’t a true reflection of the situation, as the tough new affordability checks have made it harder for older home owners to secure a mortgage.
Lenders state that the demand from people in their 70s, 80s and 90s for mortgages has risen, with the number of deals for older borrowers becoming increasingly available. However, it isn’t so easy to profile an older borrower, as some may want to borrow in order to assist their children or grandchildren to get onto the property ladder, while others need a mortgage as their income is stretched.
There are others who borrow so that they can prevent the inheritance tax charges, despite having sufficient income. More home owners require a mortgage for longer, as they have had to borrow a larger initial mortgage, in addition to helping family with financial support. There are more lenders willing to offer mortgages to people who are in retirement. The Halifax will consider people in their 90s, while Santander will lend up to the age of 75.
A CeMAP trained mortgage adviser can help you to find a low cost deal, which may help to reduce the mortgage debt before approaching retirement.
