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Mortgages for the retired (but not redundant yet)

Getting a mortgage after the age of 65 is becoming harder after mortgage rules brought in last year (2014) – but mortgage brokers can help retired borrowers find a common sense solution.

Baby girls born in Britain in 2015 are likely to live to be 97, according to official projections released last Friday (15 May).

Wee lads aren’t too far behind either, according to the stats from the Office of National Statistics, and shows that by 2037, baby boys will be expected to live to 94.

What kind of world it’ll be when we can only refer to science fiction for guidance, but what is sure right now is the view of what ‘elderly’ means to this generation is a very different image to that of old age portrayed by the last.

It seems this generation doesn’t want to pull a blanket over its knees and play the role of ‘elderly’ Society has painted for them. Just because you have a few decades under your belt no longer means that you have to be ‘old’.

April’s London marathon saw swarms of retired people pounding the streets, the oldest of whom was 90-year-old Paul Freedman (his fourth marathon) who jogged alongside his mate – the oldest female – Iva Barr, a stripling of 87. 

May’s General Election saw many changes – one of which was a new Father of the House of Commons. The new incumbent as longest-serving MP is the firebrand Labour backbench stalwart the Rt Hon Sir Gerald Kaufman. He is 85 years old in June and at the end of this Parliament will be weeks short of his 90th birthday. He has just been re-elected and appears to be in the vigorous tongue-lashing form of his life.

The world’s oldest professional body-builder, Australian Ray Moon, still competes in international competition and he is 83. Senior business people routinely go on earning, and earning big, into their 80s and even 90s. The world’s most successful investor and sometime richest man, Warren Buffett, goes on running his multi-billion dollar empire at the age of 84.

You get the picture.

So why can’t people over a certain age get a mortgage, or a loan? Especially if you have a regular pension income and/or investments and even a large amount of equity in one’s home. Yet some mainstream lenders aren’t keen to touch you with someone else’s bargepole. You could with us – investigate here:

The rules shouldn’t change when it comes to mortgages. They should be the same for everyone. Come to think of it they are the same for everyone. If the answers to the questions ‘Is it the right loan?’ ‘Can I afford it?’ and ‘Have I taken advice?’ are all in the affirmative then you should be away. 

Lending into retirement

And have you thought through what’ll happen if your partner dies or you have to go into care?

But most large companies don’t want to know. Why, I hear you rightly ask.

Because one thing that has happened since the older generation started, and perhaps even finished, their careers - is the prevalence of digital box-ticking. There used to be a thing, a governing principle, which kept all experienced people in check and helped them make important decisions. It was called common sense.

But now we live in an era where the computer rules - sometimes it seems all the discretion has gone. Decision-making seems to be a forgotten art.

Happily then, there are people at the smaller end of the lending market who will use the old-fashioned method of talking to a customer and working out whether or not there is a deal to be made the old way – with the right information, a pen and a willingness to do business.

Because, as we know, the old ways are very often the best. If you need a mortgage and you’re entering your later years, and are still active and thoroughly enjoying life thanks very much, and you want the flexibility of remortgaging or moving house and taking out a new loan then speak to a financial adviser who can help you find the best deal for you.

One that involves common sense.

Your home may be repossessed if you do not keep up repayments on your mortgage
 
By Stephen McDowell

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