More Lenders Offering A Later Life Mortgage
With people living longer, there is a need for businesses and industries to re-examine the products and services they offer. This is particularly true in the mortgage sector, which has previously shied away from offering a wide range of mortgages to people in their 50s or older.
This is no longer the case, and it is pleasing to see more options available for this market. There is a need for more mortgage options to be made available for buyers of this age, but if you are looking for assistance in buying a home, help is available.
Stamp duty holiday is encouraging more buyers
With the stamp duty holiday in place, it is natural many people are considering buying a home or moving to a new home. Being in your 60s, or even older, isn’t a barrier to arranging a mortgage. Also, you don’t need to think downsizing is your only option.
While downsizing is an ideal solution for many people and households, it isn’t perfect for everyone. Also, given the impact of the lockdown period, it is naturally people are looking for larger homes and properties with a garden. If this style of home appeals to you, there is no reason why you cannot move into this style of house with your next move.
What mortgage products are available for older buyers?
When it comes to mortgages in later life, there are three main products to consider:
- Standard mortgages
- Retirement interest-only mortgage
- Equity release products
Clayre Bareham at Mortgage Advice Bureau adds: “Anyone considering equity release should always seek specialist advice when looking at their options as there are a range of products now available which meet differing requirements – whether that means taking a lump sum out straight away, or having the ability to take ‘withdrawals’ out over the coming years, or a mixture of the two, can be considered.”
As you would expect, the introduction of the stamp duty holiday has led to an increase in the number of mortgage applications. Keith Barber from the Family Building Society spoke about the rise in mortgage applications, saying; “Over the summer, we saw increased business from borrowers whose mortgage will last beyond age 70. What we’re seeing demonstrates that stamp duty has been a key consideration in previous decisions to delay house moves and house purchases.”
The Unbiased website, a financial advice comparison website, recommends calling on the services of a mortgage broker if you are applying for a mortgage in your golden years. The site states:
“Get a statement from your pension or annuity provider to prove your long-term income. You should also check your credit score. Next, do some research about mortgages for pensioners. You will want to compare the age limits, interest rates, term lengths, fees, eligibility criteria and flexibility options of the various products. There are comparison sites to help you see what is available, but a mortgage broker can give you access to a wide market of lenders and help you choose the one that is best for you.”
While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.