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Older borrower mortgage refusals a ‘fiasco’

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04/02/2015

The difficulties older borrowers face in obtaining mortgages which stretch into retirement have been described as the “worst scandal since sub-prime”.

Mortgage brokers Tyler Mortgage Management said an increasing number of older borrowers were being refused mortgages, damaging their plans to purchase a home.

The firm described the situation as a ‘fiasco’ with borrowers in their late 40s struggling to obtain finance, despite being creditworthy.

“Most lenders simply do not want to deal with borrowers who will be paying off mortgages into retirement because it is too complicated,” said Simon Tyler of the firm.

“But armed with the correct information, many older borrowers can actually get the loan they need, even if they are in their 60s when applying.”

While many banks state they will lend to borrowers up to age 70 or more, Tyler said older borrowers were largely refused their loan if it stretched into retirement.

He described the situation as a “refuse first, ask questions later” attitude.

“The fact is that many people over 50 years old are being turned down flat when they are perfectly creditworthy and able to pay off their loans comfortably,” Tyler added. “Unfortunately, the front-line staff borrowers have to deal with do not have the authority to make the lending decisions, so most applicants are turned down.”

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