In the past it was very difficult to obtain mortgages that ran past a client’s normal State Retirement Age.
We are now living in an aging population with many people now working past their 65th birthday. The government has moved people’s State Retirement’s Age back due to the rise in the cost of pensions, caused by longer life expectancy and the increasing ratio of pensioners to workers. There is even talk that the State Pension Age for under 30 year olds will be 70.
Many people coming up to retirement have had interest only mortgages. An interest only mortgage is where you only pay the interest on the loan and at the end of the term the initial loan balance still must be repaid to the lender via a repayment vehicle such as savings, investments or other assets. However, many of these repayment vehicles have not performed as anticipated and many borrowers when they reach the end of the term have not had the money to repay their mortgages.
These are just a couple factors that have increased the demand for mortgage lenders to provide finance for those clients over 65. Many lenders now lend well past 65 with longer terms and competitive interest rates therefore making mortgages more affordable.
There are mortgage products available with the following features for older borrowers:
- No maximum age at the end of the term
- Maximum age of 80 years at the start of the mortgage term
- Competitive Rates
- Downsizing as repayment vehicle
The options available for older borrowers is continually changing and expanding therefore it is worth finding out what options are available.
If you need a new mortgage or are investing in property then speak to Hoyl Mortgages. Call Watsons on 01603 619916 and we will arrange for you to have a free initial consultation with one of their Buy-to-Let specialists.
