Fortysomethings deemed ‘too old’ to get a mortgage
Well, mortgage companies – including Halifax and Nationwide - seem to think so. They’re asking prospective homeowners to prove their retirement income from state pension age, even if you intend to work until you’re 70.
And some people who are only in their 40s are being turned down for mortgages on the basis that they’ll be borrowing into their retirement.
If you’re in your late 40s or early 50s and you want a 25 year mortgage, you might hit problems because banks are determining that your retirement age will be 65 (or 62 if you’re a woman) – regardless of when you might actually give up work. Nationwide are even demanding that you must have a private pension in place if you’ll still be borrowing in your 60s.
So it doesn’t matter whether you’re good for it – you might be considered too old for it. Financial adviser Alan Lakey, whose clients were turned down for a mortgage despite being financially solvent said:
‘There is a lot of foolish, tick-box decision-making at the moment. There is no logical explanation why borrowers such as these should not be approved for a loan.’