Mortgages extending into retirement

June 22, 2015

Data from the Council of Mortgage lenders reveals that a third of new mortgages being taken out today will extend beyond their 65th birthday, this situation is being created because some buyers are entering the property market at an older age and the duration of some mortgages is longer term.

The new figures were revealed at a conference last week focusing on the issue of ‘pension tension’, helping to crystallise the distinction between borrowing into retirement, and borrowing by customers in retirement.

The loans that do extend into retirement are expected to be repaid shortly after their 65th birthday, in fact 80% are expected to be repaid before the age of 70.

Borrowing in retirement occurs on a much smaller scale and has been in decline since 2007, except for a small increase last year attributed to strong growth in lifetime lending.

Saga the over 50’s group pointed out that many older homeowners are still being blocked from accessing more competitive mortgage deals. The Financial Ombudsman Service upheld a customer complaint in April this year after HSBC refused to give a mortgage on the grounds that the consumer would have been over 65 at the time of the term end.

A Saga spokesperson reportedly said: “Whilst a lucky few may have been able to take out a mortgage to move home at an older age, we’re still hearing from people who are stuck in uncompetitive mortgages who are unable to move to a better deal simply because of an arbitrary age limit, financial institutions need to change. Lending decisions should not be based on somebody celebrating a birthday; it should be about an individual’s ability to pay.”

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

Pflugerville, TX: Emerging Trends in New Home Construction

The Rise of Sustainable Living in Pflugerville Nestled in the heart of Texas, Pflugerville is witnessing a significant shift towards sustainable living in new home construction. Builders and developers are increasingly focusing on eco-friendly materials and energy-efficient designs. This trend is not just a nod to environmental consciousness but also a response to the growing…
Read More →
Home and Living

How to Choose the Best Shower Cabin For Your Budget

If you are looking for the best shower cabin to fit your budget, then allow us to be a guide on this shopping adventure! Whether you’re looking to invest in something luxurious and timeless or something more affordable and modern, it can be daunting knowing where even to start. Fortunately, we have all the key…
Read More →
Breaking News

Breaking Property News – 01/12/2023

Daily bite-sized proptech and property news in partnership with Proptech-X. Full material Information Guidance B & C published by NTSELAT all you need to know New guidance for sales and letting agents covers all three phases of programme Aim is to help agents to meet their existing legal requirements under the CPRs Material information guides…
Read More →
Home and Living

Navigating a Move with Your Baby: 7 Sanity-Saving Tips

Moving to a new home can be exciting and stressful, and adding a baby to the mix becomes a whole new adventure. Babies require extra attention and care during a move, but with some thoughtful planning and a few sanity-saving tips, you can make the transition smoother for you and your little one. In this…
Read More →
Home and Living

Creating Privacy with Window Treatments: A Comprehensive Guide

When it comes to keeping your home a private sanctuary, you need the right window treatments. Whether you want complete blackout, light diffusing options, or sheer privacy curtains to let in sunlight while maintaining discretion from outsiders – there are plenty of creative ways to customize your windows for maximum personal security and protection. In…
Read More →
Home and Living

Glass Shower Doors Styles: Finding the Ideal Fit for Your Bathroom

Are you ready to update your bathroom and give it a luxurious, sophisticated feel? Installing glass shower doors is the perfect way to brighten up any bathroom and add a stylish touch. There are a wide variety of styles available that can fit into any space or design theme. But which type of glass shower…
Read More →