Mortgage deals in retirement.
The average age for first time buyers taking out a mortgage deal has now hit 37. This means many taking on mortgage may have to continue to make repayments into retirement.
In recent weeks lenders such as the Leeds Building Society have begun to tightened mortgage criteria for deals where lending extends into retirement.
This may become a problem for many more buyers if prices continue to rise and mortgage terms have to be extended to 30 years + to make ownership affordable.
Over the last 18 months several lenders such as the Skipton and Newcastle BS have reduced the maximum age allowed at the end of the mortgage term, both reduced theirs to 75.
The Leeds has now introduced its own change, by announcing that it has also reduced the maximum age limit for the date of the end of a mortgage deal from 80 to 75 years of age. Borrowers now have to be 74 when their mortgage deal ends.
As there is greater emphasis on mortgage affordability lenders are tightening their criteria to ensure that home-owners can afford to make mortgage repayments in retirement.
If you are looking for a mortgage but you do not fall within high street lending criteria you are advised to contact Deal Direct. Our advisers are impartial experts with access to lenders mortgage deals market-wide.
Deal Direct can help you find a mortgage deal whatever your circumstances.
Call today for advice and a quote on 0800 848 8828.
