It’s good news for older borrowers as homeowners in their 80s now have more choice than ever when it comes to getting a mortgage.
Until recently, there wasn’t a single mortgage available that would lend to prospective borrowers who were between 80-84 when their mortgage was due for repayment. However, according to data analysts Moneyfacts*, a sharp increase in demand from older borrowers means there are now more than 1,000 products up for grabs.
Following the financial crisis, the City watchdog introduced stern rules to curb risky lending causing banks to reduce the number of mortgages on offer to borrowers over the, then-state pension age of 65. The reduction meant that even with a pension income, mortgage payment borrowers would struggle to persuade a bank to offer them a loan into their 70s.
But oh, how times have changed!
Only 18 mortgage deals now have a maximum age restriction of between 65 to 69, compared to more than 900 in 2014.
An expert from Moneyfacts, said:
‘Over the past five years, mortgage providers have become far more accommodating to borrowers who wish, or may have no alternative but to extend their mortgage term well past the official pension age.
‘The scaling back of strict criteria around the maximum age at the end of a mortgage must be a welcome relief for those borrowers who may have reached the end of their mortgage at 65 on an interest-only mortgage and have had few options available to turn to.’
Currently, there are eight societies, including Nationwide, that lend to borrowers aged 85 at the end of the mortgage term. And, 16 societies including Ipswich, Marsden and Penrith, that have no age limit at all but instead enforce a maximum term.
If you’re aged over 80 and would like to discuss the mortgage options available to you, contact First Financial Solutions today. We have an expert on hand to help find the right deal for you. To get in touch call us on 01639 262222 or click here.
**Please be aware that your property may be repossessed if you fail to keep up repayments on your mortgage.