Twenty five year mortgage sold to 55 year old

amnblog

The difficulty for those over 55 in seeking a standard residential mortgage is:


Most lenders have a maximum age at the end of the term of 70 or 75.


This means affordability is calculated over a term of 20 years or perhaps much less - often killing the affordability calculation.


Some Lenders when terms extend beyond what they consider normal retirement age (65 or 67) will require proof of retirement income - even if the applicants say they will work on.


Proof of retirement income is increasingly difficult to obtain for anyone without a long track record of employment in the public sector.


Interest only is not a solution as lenders don't like it and where it is accepted there are so many caveats that very few applicants qualify. In any case, lenders work out affordability based on a repayment mortgage.


Lending to those born before 1960 is a poorly served market that needs a major overhaul both in terms of products and regulation.

lonestarfan

Cyberman60 wrote: »

People nowadays just do not accept that they should take responsibility for their own decisions. I'd love to have my Offset Mortgage until I'm in my eighties as it would mean that I have access to a 'cheap equity release'.

My advice to the OP is either sell your house to pay off your mortgage or increase your earnings until you retire to pay off the capital.

The OP maybe not be taking responsibility for their decision. Plenty of 50,60,70 and 80 plus people I meet do take responsibility for their decisions. If they want a mortgage at 80 then who are you to say its irresponsible. You have absolutely no idea what life's rich tapestry has been for them. I'd rather have 80 year old borrowers in areas they want to live without fear of being evicted by a landlord any day. So what if its equity release at low rates. Age should have absolutely nothing to do with whether you can have a mortgage to buy a place where you will be safe and near your family etc. So what if some interest only pensioners end up effectively renting. So long as the lenders are not sustaining losses. Santander only lend max 50% interest only LTV. I've no problem with people doing that and paying on death. Equally I've no problem with pensioners having repayment mortgages. Whichever payment method they have it means they get to exercise some choice over their living arrangements. I agree with amn that the market is poorly served.