There’s been a rising demand for later life mortgages, as more and more borrowers start seeking out new mortgage deals in their early 80s - prompting firms to up the age limit up to 85.
More choice than ever before
Around 5 years ago, in the wake of the financial crisis, strict rules were imposed in order to limit any lending that was considered risky. Banks ended up cutting back on the number of mortgage deals they offered to any borrowers who were above the state pension age, which back then was 65. During this time there certainly weren’t any mortgages that allowed borrowers to repay their debt between the ages of 80 and 84.
Since then though, times have definitely changed, as the number of mortgage deals that carry an age restriction limit of between 65 to 69 have dropped significantly. Homeowners who wish to borrow into their 80s, now have more choices available to them than ever before.
According to data analysts Moneyfacts, over 1,000 mortgages became available for customers looking to take their loan past their 80th birthday in January this year. This was all to meet the rising demand for mortgage deals from older borrowers.
Change is a good thing
This has all undoubtedly come as a welcome relief to those who have reached the end of their deal at 65, on an interest-only mortgage, and who had previously very few options available to them.
The scaling back of the maximum mortgage age criteria is mainly being led by building societies such as Nationwide. Ipswich Building Society for example has a 40-year term, which would mean someone could borrow up to the age of 110 if they took out the mortgage at 70 years of age.
It’s clear that the maximum age increase would benefit a wide variety of borrowers, such as:
- People working later in life.
- Those needing finance following a divorce.
- Borrowers in their 50s and 60s.
- Those coming to the end of interest-only deals.
The UK’s older population are working for far longer, and living much healthier lifestyles, so having more options open to them for securing a mortgage makes perfect sense. If borrowers have provable income in their later years and can demonstrate affordability, there isn’t a reason why they shouldn’t be allowed to extend their borrowing capacity.
Even older borrowers need help
Whether you want to use equity to invest or to help your children or grandchildren with a deposit, buy property to rent out or use it for various other uses; there are plenty of reasons why you would make use of later life mortgage deals as an older borrower.
Whatever the reason, getting the help of a professional mortgage broker can really increase your chances of getting the deal you want. At TaylorMade, our experts can compare hundreds of mortgage deals across the market, highlighting the ones that suit you and your individual circumstances the best.
Please, get in touch with us today on 0345 305 2540 or at info@taylormade-finance.co.uk
