According to the Mortgage Broker Tools (MBT) affordability index, just 37 per cent of borrowers aged 65 and over are able to get the loan size they request, compared to three quarters of younger people.
Further, some 28 per cent of borrowers aged 65 and up were offered a smaller loan size than they requested. For those under 65, 24 per cent were offered a smaller loan.
However, the average loan size required by older borrowers is significantly lower than their younger counterparts.
For those aged 65 and up, the average loan in March was £100,000 while those aged 65 and under requested £216,750 on average.
There are also fewer lenders able to cater to the borrowing needs of older people.
According to MBT’s index, some 35 per cent of lenders were unable to lend to over 65s at all in March, up from 26 per cent in January.
This drops to six per cent of lenders being unable to help those aged 55 and over, and falls further to one per cent when dealing with younger borrowers.
Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “As a culture, we often focus quite heavily on younger borrowers and, in particular, first-time buyers. However, we need to have a well-functioning housing market at all stages.”
She also noted that the UK had an ageing population, with the number of people aged 65 and over expected to exceed those aged 18 and under.
“This is a growing demographic, and they do not fit into a simple box, with many opting to work steady jobs for longer, for example,” Toumadj said.
She added: “While age can be a concern for what is fundamentally a long-term commitment, it is just not that simple. The mortgage market needs to focus on the individual, and in doing so provide a more certain landscape for borrowers who might present just as strong a lending option as many of their younger counterparts.”
