Its survey found that 57% of brokers said older borrowers believed their age will work against them, leading many to assume that equity release is their only option.
Further to this, 54% of brokers said that older borrowers were unaware of the different means of proving affordability.
Brokers to better advise older clients
Brokers continue to see demand for later life lending – Suffolk Building Society said only 3% reported a decline in enquiries from older borrowers.
The most common reason older borrowers seek later life lending is reaching the end of a mortgage term without being ready to repay the outstanding balance, cited by 66% of advisers.
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This was followed by remortgaging an existing mortgage and raising money to help family members, such as through gifted deposits, both cited by 47%.
In spite of demand, older borrowers were ultimately unaware of how the mortgage market has progressed.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said borrower perceptions have not yet caught up with the innovations within the market. Grimshaw urged brokers to bridge this knowledge gap.
She said: “If many over-55s still assume their age will count against them, then now is the time for brokers to challenge those outdated views and help clients understand the options widely available.
“Rather than waiting for older borrowers to rule themselves out, brokers can start the conversation about later life lending, explain how lenders assess retirement income and other assets, and show that being over 55 is not, in itself, a barrier to borrowing.”
Older borrowers could, in some cases, be more reliable borrowers, she said. Over half of Suffolk Building Society’s applications come from over-55s.
Grimshaw added: “By helping older clients understand that they may have more options than they realise, and that age alone does not have to stand in the way, brokers can build stronger relationships, tap into a growing area of the market, and feel good about what they’re doing at the same time.”
