{"id":10420,"date":"2018-01-23T16:15:33","date_gmt":"2018-01-23T16:15:33","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=10420"},"modified":"2018-01-23T16:15:33","modified_gmt":"2018-01-23T16:15:33","slug":"more-focus-on-mortgage-financing-options-older-generation","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/2018\/01\/23\/more-focus-on-mortgage-financing-options-older-generation\/","title":{"rendered":"More focus on mortgage financing options for the older generation"},"content":{"rendered":"

Statistics suggest that between now and 2032 there will be 40,000 interest-only mortgages maturing annually, with no obvious means for their older borrowers to repay them.<\/strong><\/p>\n

Last year the Financial Conduct Authority (FCA) estimated that 1.8 million people had outstanding interest-only mortgages and many did not have appropriate plans to pay them off,\u00a0other than selling up, or taking on new borrowing usually in the form of equity release<\/a>.<\/p>\n

In September, the FCA published a paper on the financial needs of the UK\u2019s ageing population<\/a>. It said that the proportion of borrowers aged 65 or over will be one in four by 2050, and called for mortgage lenders to do more to help older consumers<\/a> get loans. According to a study for equity release referral service Key Partnerships, 77% of mortgage advisers say that traditional lenders need to develop products specifically for customers with interest-only deadlines, and 79% say that traditional lenders have been slow to address the problem.<\/p>\n

Age limits on lending are increasing <\/strong><\/p>\n

While the approach to later-life lending is inconsistent, some progress is being made in the mainstream mortgage market<\/a>. Last year Halifax increased its lending age limit from 75 to 80, and Nationwide will now consider borrowers up to the age of 85. Co-Op Bank and Santander have both agreed partnerships with equity release lenders, too.<\/p>\n

Currently, both Santander and Barclays will accept interest-only mortgages, for those that don\u2019t want to switch to capital repayment loans, up to the age of 70, and Hodge Lifetime is offering specialist interest-only terms to people up to the age of 95.<\/p>\n

Retirement interest-only mortgages<\/strong><\/p>\n

The FCA is considering allowing lenders to offer \u2018retirement<\/a> interest-only\u2019 mortgages, providing older borrowers with an alternative to lifetime mortgages (equity release), which allow you to borrow up to 60% of the value of your home. Last year pensioners took a record \u00a33bn out of their homes with equity release, and more than one in five used the money to pay off their mortgage.<\/p>\n

If permitted, retirement interest-only mortgages will provide a viable alternative to older borrowers<\/a>, who may not be ready to downsize or release equity from their property to repay their mortgage at the end of its term.<\/p>\n","protected":false},"excerpt":{"rendered":"

Statistics suggest that between now and 2032 there will be 40,000 interest-only mortgages maturing annually, with no obvious means for their older borrowers to repay them. Last year the Financial Conduct Authority (FCA) estimated that 1.8 million people had outstanding interest-only mortgages and many did not have appropriate plans to pay them off,\u00a0other than selling… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":10428,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[107,25,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/10420"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/comments?post=10420"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/10420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media\/10428"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media?parent=10420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/categories?post=10420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/tags?post=10420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}