Borrowing into retirement made easier with more deals available
The number of mortgages that reach the end of term when borrowers are aged between 80 and 84 years has increased from zero in 2014 to 1,078 products today, said Moneyfacts.
And the financial information provider found that the number of products that require a borrower to be aged between 65 to 69 when it ends has reduced from 923 products in 2014 to just 18 today. This is due to lenders pushing back maximum age limits.
Darren Cook, finance expert at Moneyfacts.co.uk, said: “Over the past five years, mortgage providers have become far more accommodating to borrowers who wish, or may have no alternative but to extend their mortgage term well past the official pension age.
“The scaling back of strict criteria around the maximum age at the end of a mortgage must be a welcome relief for those borrowers who may have reached the end of their mortgage at 65 on an interest-only mortgage and have had few options available to turn to.”
Living, working and borrowing for longer
Moneyfacts found that five years ago, only half (52%) of all available mortgages were permitted to mature when the borrower was 75 years old and over. But today, this figure stands at 72%.
“The scrapping of the Default Retirement Age in 2011 now means that the official pension age and retirement age are no longer one and the same and employees can choose to work beyond the pension age for reasons other than financial need,” added Cook.
“Reasons to extend a mortgage past pension age may include releasing cash from their equity or purchasing a retirement property.”