The Telegraph and Sunday Times both reported this weekend on the difficulties experienced by older borrowers when trying to secure a mortgage. Many of the high street lenders have reduced their maximum lending age, and increased regulation has also resulted in tougher criteria and harsher lending decisions. Brokers suggested those looking for a mortgage term which could take them past the age of 75 would be better off considering smaller building societies such as Market Harborough, Kent Reliance and Mansfield.
The Times revealed that last year lenders contacted one million interest-only borrowers whose mortgages are due to finish by 2020, asking them to outline how they would repay any shortfall, but a recent report by the Council of Mortgage Lenders showed that only 30% of those contacted has responded. Some lenders are now using debt firms who will make visits to homeowners to establish the household finances and the intentions for repaying.
Elsewhere the Independent on Sunday looked at the pros and cons of shared ownership mortgage schemes.