If you are looking to borrow in later life Enable’s IFA’s of Bishop’s Stortford might be able to help you with your financial planning. When it comes to mortgages at the moment over half of the residential mortgage deals are available to borrowers aged 55 or over at the point of application. Many also have a maximum age of 75 or above at the end of the mortgage term.
Some recent research carried out by Moneyfacts.co.uk found that there were 2,734 mortgage deals available in the market and of these, 1,541 are available to borrowers who are aged 55 or over. This may well be seen as good news for older borrowers but it has to be noted that just 147 of these mortgages are specifically marketed towards those older borrowers who are past pension age, only 147 deals available recently were for those of a minimum age of 55.
It does, however, mean that later life borrowers have a huge range of choice when it comes to mortgages way more than their younger mortgage seekers. And there are also specific mortgage deals that even have a maximum age of 80 or over for an end of mortgage term. It may be better off focusing on deals specifically aimed at later life borrowers.
As well as providing a higher maximum age limit, some later life mortgages provide the option of interest-only deals. When choosing a later life interest-only mortgage, borrowers should be aware that they will have to pay the mortgage off after an agreed period.
“The mortgage market may have taken a couple of years to catch up with the Financial Conduct Authority’s (FCA) directive to meet the increasing demand for mortgage borrowing among older consumers,” says Eleanor Williams, finance expert at Moneyfacts.co.uk. “But it now seems things are moving in the right direction. Later life borrowers who traditionally have felt uncatered for now have more options open to them, such as the fact an increasing number of standard mortgage products are available over a 40-year term, RIOs becoming classed as standard mortgage products, and of course various methods of equity release.”
It may be easier than ever to take out a mortgage in later life, but Enable’s experienced financial advisors know it is important to consider your options carefully before making a decision.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage