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Two in three over-55s want more retiree mortgages

  • 07/09/2015
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Two in three over-55s want more retiree mortgages
A survey reveals the frustrations of older mortgage borrowers, with 47% saying lenders should base decisions on ability to pay, not age.

The study from More 2 Life showed 37% of over 55s think lenders should avoid a mortgage borrowing age cap as the pension revolution highlights the need for new retirement income options.

Two out of three over-55s would like to see regulated lenders launching loans and credit cards for the retired.

More 2 life is considering a variety of credit solutions and has commissioned a report into this burgeoning sector, after research showed nearly 63% of over -55s say they would welcome the opportunity to borrow.

Dave Harris, managing director at more 2 life, said: “Regulators have quite rightly focused on the need to stop irresponsible lending but that is having a chilling effect on lending to responsible borrowers and even those in their 40s as recent FOS rulings have shown.”

In response to a Mortgage Solutions question on equity release at the FCA’s conference today in London, Linda Woodall acting director of supervision – retail and authorisations, suggested products which flex with the borrower as they get older might be a more likely solution.

Mortgage technical specialist, Kathy Taylor, said: “There is a bigger rump of customers who for whatever reason are going to need a mortgage that extends into retirement. In the past before the MMR people could borrow 20 to 30 years into retirement. We need to think about what the solution is for these people.”

The More 2 Life research shows 17% of over-65s expect to borrow or have already borrowed money in retirement.

Figures from the FCA suggest there will be 40,000 interest-only mortgages maturing each year between 2017 and 2032 where the borrower is aged 65 or above.

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