Over 50's will bit hit by new mortgage regulations

ukcarper

Graham_Devon wrote: »

Do they have any kind of deposit? I'm assuming they wouldm and quite a chunk.

I'd suggest a 25 year mortgage therefore is simply the wrong product, could be a lot shorter.

They would have a very large deposit half the equity in family home. They could have retired early and be recieving that pension now with the prospect of being better off when they reach state pension age.

ruggedtoast

Thats interesting. One of my renter friends (a friend who is renting, not a friend who I rent) is 40 this year and she saw a broker in an EA. He told her she wouldnt be able to get more than a 20 or so year mortgage due to her age.

She was quite despondent about it.

moneyinmypocket

We must respect the market house prices are climbing because hard working people will pay. Respect the house and the banks we should be greatful

ukcarper

ruggedtoast wrote: »

Thats interesting. One of my renter friends (a friend who is renting, not a friend who I rent) is 40 this year and she saw a broker in an EA. He told her she wouldnt be able to get more than a 20 or so year mortgage due to her age.

She was quite despondent about it.

Don't blame especially as she will probably be working until she's 75

Graham_Devon

ukcarper wrote: »

They would have a very large deposit half the equity in family home. They could have retired early and be recieving that pension now with the prospect of being better off when they reach state pension age.

So is this person a real person who has been turned down for a mortgage of 30k with a huge deposit?

Surely 15 years would have bene more suitable either way?

ukcarper

Graham_Devon wrote: »

So is this person a real person who has been turned down for a mortgage of 30k with a huge deposit?

Surely 15 years would have bene more suitable either way?

The limit is 65 if that person was say 55 they could only take a 10 year mortgage which would be almost twice a 25 year mortgage at 4% the costs are £308 and £160 a month which could easily make the difference between affordablity or not.

Percy1983

ukcarper wrote: »

Lets take someone in their mid 50s who gets divorced after selling family home they need a mortgage of £30k to buy a small flat. They have a final salary pension of £10k can you give me a good reason why they shouldn't be given a 25 year mortgage.

Why would they need a 25 year mortgage on £30k?

ukcarper

Percy1983 wrote: »

Why would they need a 25 year mortgage on £30k?

In simply terms if yes see reply to Graham

MouseTrap

ukcarper wrote: »

Lets take someone in their mid 50s who gets divorced after selling family home they need a mortgage of £30k to buy a small flat. They have a final salary pension of £10k can you give me a good reason why they shouldn't be given a 25 year mortgage.

Presumably because the average life expectancy is around 80 years old so no bank in their right mind would lend a mortgage where the payee has less than 50% chance of living long enough to pay it off?

Graham_Devon

ukcarper wrote: »

The limit is 65 if that person was say 55 they could only take a 10 year mortgage which would be almost twice a 25 year mortgage at 4% the costs are £308 and £160 a month which could easily make the difference between affordablity or not.

So this isn't a real person?

I was confused, I thought someone had actually been turned down and thought there must be more to it.

As for your point, only yesterday you stated to me that someone working full time and holding down a job at the weekends with £1500 a month take home pay should share if they can't afford to rent a place, and that's just the way it is.

Yet here you are suggesting these rules could stop someone in their 50's from buying, as £308 a month could be too much.

And I'm supposed to say what? That the rules are far too harsh!? Poor 55 year old!? These people should be allowed a 25 year mortgage to reduce the mortgage payments to £160 a month otherwise it's just unfair (or something?!)

....but on the other hand I;m supposed to accept that it's life that a women in her twenties is priced out of even renting when she has a £1500 income per month!?

Talk about hypocritical mate.