Headlines that Older Borrowers Are Refused Mortgages by Lenders

We have seen headlines in the press this week that older borrowers are being refused mortgages due to their age.

Research by the Family Building Society by using mystery shoppers found that whilst Family Building Society would offer many older people mortgages, all of top six mortgage lenders refused 10 year mortgage with a 5 year and 2 year fixed rate deal to elderly lenders whereas they would even lend to a 90 year old.

Comment

No doubt Family Building Society would lend provided the elderly person had enough secure income to pay the mortgage during the fixed rate period as well as having enough income to pay any standard variable rate after the fixed rate deal ends.

We are minded that all lenders cannot discrimate on age, so larger lenders will set have a maximum age at which all mortgage must end e.g., age 75 or 80 for all applicants, whether you are 25 or 55, but is it that because of the sheer volume of business that larger lenders would attract and the potential headline problems that they would have if they were evisting masses of octogenarians.

It is welcome that a lender like Family Building Society is in the market for elderly borrowers and we are happy to highlight the story to make people in later life aware that they may secure a mortgage but we suspect this is more about promotion rather than chastising other lenders.