Responding to the UK Finance statistics on later life mortgage lending, Arjan Verbeek, CEO of Perenna comments: “The mortgage market continues to be particularly challenging for borrowers above the age of 55. The decline in mortgage lending to this demographic demonstrates that mortgage market is fundamentally ageist.
“These statistics fall in line with our own findings, in which 60% reported a lack of choice and mortgage products tailored to them and a third finding their mortgage restrictive because of their age. Concerns about mortgage affordability are particularly prevalent among later life borrowers, who often face end-of-term age-related restrictions from lenders when trying to remortgage or secure a new mortgage. The current market, dominated by short-term fixed teaser rates, does little support this demographic.
Homeowners over the age of 55 should not be inhibited by concerns about mortgage affordability or be forced to pursue less desirable alternatives, such as equity release or postponing retirement. They should have solutions available to live the lives they desire and deserve. Retirement interest-only (RIO) mortgages can help to provide flexibility and certainty for over-55s, but to provide a real solution to this problem, structural change within the market is needed.”
