Over 40s struggle to get a mortgage

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14 Mar 2016

Over 40s struggle to get a mortgage

Author: Greg May

One in five mortgage applicants between 45 and 54 say they have been turned down for a home loan because of their age in the past two years, according to a recent survey from Nottingham Building Society.

CoupleFirst-time buyers take their first steps onto the property ladder at an average age of 31, according to Halifax. And with most mortgage terms being between 25 and 30 years, this means many borrowers could face paying off their mortgage at 56 or 61*.

“These problems often stem down to rules that state that borrowers must be able to prove income past retirement age” comments Greg May, Director of Romans Mortgage Services, “and not all lenders will take pension income into account.”

Previously, the Council of Mortgage Lenders** said the majority of people paying a mortgage in retirement meet repayments without any issues at all. However, many lenders still have out-dated age limits in place and don't take account of individual circumstances.

Ian Gibbons, senior mortgage brokering manager at Nottingham Building Society, said: “It is baffling for people in their early 40s to be told they are too old to have a mortgage and particularly so when the average age of first-time buyers is rising which means some could even be first-time buyers.

“There is no doubt creditworthy customers are being rejected and some are facing restrictions on their choice of mortgages.

“However, there are options out there for older borrowers and the key to ensuring they get the most appropriate mortgage is to search the whole market.”

Romans Mortgage Services advisers have years of experience in assessing the marketplace and use their expertise to choose the most suitable lender for each customer which means it's much more likely that their application will be successful the first time.

To find out more and book an appointment with a local adviser call 0118 3219 536 or visit: romans.co.uk/mortgages.

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

There will be a fee for mortgage advice.  The actual amount you pay will depend upon your circumstances.  The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.  

*thisismoney.co.uk

**express.co.uk

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