In a briefing entitled, Just a number? Age, complaints and the Ombudsman, the consumer complaints body listed a number of case studies where borrowers did not meet their lender’s criteria due to their age.
The Ombudsman said while it recognised the mortgage market was in a state of flux with the onus on lenders to lend responsibly, it noted that in a number of cases it had reviewed, borrowers had been pushed into financial hardship or prevented from moving home due to the actions of lenders.
It said: “It’s important for financial businesses to have constructive conversations with their customers to find workable solutions when people find themselves in difficulties.
“Although the Mortgage Market Review makes it clear that existing customers can still be offered new deals for existing borrowing – even if the lending policies have changed for new borrowers – this doesn’t seem to always happen in practice.”
However, it noted that consumers will not necessarily be able to rely on products they have in the past, with the number of interest-only and buy-to-let mortgages available to them decreasing in recent years.
“Withdrawing from, or limiting exposure to, these markets might be a legitimate commercial decision for lenders to take, providing that risk-based decisions related to age are made according to what the law requires. There might be an impact on the way that consumers will need to plan their finances over the coming years,” the report added.
Earlier in November the Building Societies Association (BSA) pledged to lead a review into age caps on mortgage lending within the mutual sector. Building societies will review affordability assessments and the inclusion of pension income as part of the review which is due to launch over the next 12 months.
