BROKERS HIT OUT AT MORTGAGE LENDING INTO RETIREMENT

April 28, 2016 by in category Mortgage News with 0 and 0

After new figures showed half of all building societies had maximum age limits of at least 80, brokers have hit out at banks for their stances on mortgage lending to older borrowers

It was announced last week by Halifax that it would use earned income for affordability up to age 70. Previously it applied this criterion up to state pension age, relying after that on pensions or other retirement income. However, the lender has not changed its maximum age of 75.

Especially as building societies seem to be making good progress in this area, the move has thrust the lending-into-retirement issue back into the spotlight,

Barclays and RBS have a maximum mortgage age limit of 70. Halifax, HSBC, Nationwide, Santander and Virgin insist that the borrower repays their mortgage by the time they are 75.

But with six having loosened their criteria in the past six months, 22 building societies now provided mortgage lending up to 80 or 85, or have no mortgage age limit at all,

The Building Societies Association notes that 10 of its members do not have any mortgage age limits on lending and it says it is expecting more to ease their criteria this year.

Commentators stress banks in general are not doing enough to help older borrowers get mortgages.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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