Mortgages into retirement – building societies to review policy.
Building societies across the UK have pledged to review the upper age limits on mortgages. This decision forms part of a package of reforms to tackle the issue of lending into retirement.
Pension rules have changed, the age at which people can start drawing their state pension has increased. This coupled with the fact prices have rocketed and deposits increased, so many more buyers both now and in the future will be older when taking out their home loan. This means they will be older when their mortgage finishes.
To help older borrowers the Building Societies Association plans to publish a consumer guide. This will bring together information on pension freedoms, equity release, inheritance, powers of attorney and current age policies.
With the BSA saying that by 2034 around 25% of the UK's population will be 65 or above, house prices, the abolition of a default retirement age and increased divorce rates all mean people are buying later and repaying for longer. Lenders market-wide need to take this into account.
If you are looking for a mortgage Deal Direct can help you to find the right product for your financial needs.
Whatever your age we can search the entire market for the right mortgage at the right rate.
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