Mortgage products for those in retirement

Have you retired?

Once you have retired, you will join many people who feel that the lending products available to you are slim pickings. Since the credit crunch, there has been a real crack down on lending to those over the age of 60 – which it seem in lending terms is the new 80.

A fall in products available to the over 60s

Many lenders have cut the maximum age on their mortgage products in recent years. At the peak of the property market six or seven years ago there were many options available to retirees, with banks and building societies setting their limit at around 80/85 years of age. For those in their 60s, securing lending was a breeze.

The choices of mortgage products in particular have fallen drastically.

The first lender to take this sort of action was Santander, who dropped the maximum age at the end of the mortgage from 85 to 75 years old. This action was taken in 2009, and soon after the Financial Services Authority announced that a review would be undertaken to stop irresponsible lending – which was seen as lending to those into retirement.

The maximum lending age for most lenders is 75, and recently Leeds Building Society dropped their maximum lending age and withdrew lending for those into retirement age. This was followed by Newcastle Building Society and Skipton Building Society.

A change in attitudes

The aim was to make people think ‘long term’ about their lending, and to reinforce the message that this money was being borrowed and would need to be paid back. Something that didn’t seem a priority when people were taking out 95% mortgages and paying it back ‘interest only’.

If you would like remortgage advice or are approaching retirement age and want to know how these issues will affect you, contact us today. We can help you to not only plan a comfortable retirement but also to look at your property portfolio – whether you have one property or several – and talk to you about your remortgage options.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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