mortgage for over 70s

koexelek

Joe_Bloggs wrote: »

Dear J,koexelek,Ham,betmunch

What is in the deal for the Darlington or Ipswich lenders to cater for the particular needs of some when other lenders rule out such lending.

How can the lender afford the risks ?

J_B.

It's ulimately up to an individual lender who they want to lend to ( as long as it isn't illiegal).
It depends whether the individual lender deems it as sensibe lending or not.

Some lenders have decided they are still happy to lend to the over 75s, but most have decided they no longer are.

koexelek

betmunch wrote: »

Its a fair point, but I would rather be safe than sorry.

Especially when its in a thread that specifically asks for advice. I do realise I may be being over cautious.

You are probably right. If anything goes wrong, both the customer and the lender will normally blame the broker regardless:o

betmunch

koexelek wrote: »

You are probably right. If anything goes wrong, both the customer and the lender will normally blame the broker regardless:o

Maybe we need a tickbox to use that will confirm people have read and understood our disclaimer before our posts can be revealed!!!!

The_J

Joe_Bloggs wrote: »

Dear J,koexelek,Ham,betmunch

What is in the deal for the Darlington or Ipswich lenders to cater for the particular needs of some when other lenders rule out such lending.

How can the lender afford the risks ?

J_B.

The older age group is one of the safest categories, they are a generation that understands debt needs to be paid.

Pension income, if it exists, is more secure than employed income. If the pension income can support the mortgage, can I ask why you think that is not acceptable?

Other lenders, like the mainstream banks, used to offer mortgages to older people (Halifax used to have no maximum age). The reason they have stopped is purely so they don't get negative press from repossessing old people. Of course it's ageist but ultimately it is our gutter press who are to blame.

Joe_Bloggs

In response to The J. I don't think the gutter press can be blamed for curtailing mortgages to old age pensioners 75+. The blame might fall nearer to the FSA.

Ray Boulger has some thoughts that reveal that 12.5% of those 65-74 still have a mortgage. My parents had a mortgage for a pound for several years. Without the lending data the percentage is meaningless.

Edit:-

In the Aviva Real Retirement Report survey is appears that the percentage of those 75+ who have a mortgage is 8%. The average size of the mortgage 87500.
J_B.


J_B.

Thrugelmir

koexelek wrote: »

You are probably right. If anything goes wrong, both the customer and the lender will normally blame the broker regardless:o

The FSA may find the lender accountable.

When lending in old age there's has to be certainty to income, i.e. a guaranteed source over the term of the mortgage.

Inflation erodes the value of pension income for example.