Repay before you’re 75: Tough new mortgage rules to hit older housebuyers
There are interesting links between this story and my other feature in Hinterland this week about the challenge to pensioners ongoing benefits. That story points to sactions for pensioners who don’t work past retirement, this story suggests they are not seen as credit worthy past 75. It tells us:
“New rules on mortgage lending that could prove problematic for those trying to get on the property ladder are due to be announced tomorrow.
The Financial Services Authority (FSA) is expected to say that lenders will be unable to agree a mortgage unless a homeowner can repay it before they are 70 or 75, the Daily Mail said.
This could cause difficulties for people in their 50s trying to get a mortgage, as most loan terms are for 25 years.
David Hollingsworth, from mortgage advisers London & Country, told the newspaper that lenders would demand mortgages are paid off by the time people were 70 or 75, and said that banks and building societies were already starting to tighten their lending criteria.”
Don’t grow old and if you must don’t do it in rural England!