Five years ago, there weren’t any mortgage products available for homeowners wanting to repay their loan up to the age of 80. Today, there are over a thousand. This shows a marked trend in mortgages, with more and more products now available to older house hunters.
This improved availability of mortgages for older people is great news for mature house hunters everywhere. Giving homeowners the chance to move house even after they retire, and opening up a wider range of options to older house buyers, these new products could make a huge difference to your house search. Keep reading to find out more.
Mortgages and older borrowers
For years, most mortgage companies asked that borrowers repay their loans by the time they were 70. For some companies, the age limit was even lower. There are a number of reasons why lenders created these rules but essentially, they ensured that borrowers would pay back the majority of their loans before they hit pension age.
A consequence of the mortgage age limit was that many homebuyers over 50 found it difficult to secure long term loans. Buyers would have to either borrow a smaller amount and pay it back faster, or simply up their monthly payments in order to repay their mortgage before the time limit expired.
This meant that many house hunters were forced to lower their budgets and settle for homes that weren’t quite right.
New mortgages for older borrowers
The number of mortgages available for older borrowers has been steadily rising. In 2014, 52% of products were available up to the age of 75. By the beginning of 2019, 72% of mortgages were open to borrowers of the same age. This opens up a whole world of house buying options to older people and makes it a lot easier for retirees to buy their dream house and make the most of their golden years.
Older buyers in Norfolk
Norfolk has always been a popular destination for those looking to retire somewhere beautiful, so it’s no surprise that a high percentage of the population is over 70. According to figures published in the Eastern Daily Press, over 30% of the people living in Norfolk are aged 64 or over.
For these residents, this new wave of mortgage products could make a big difference. Dramatically boosting your chances of securing a mortgage and buying the home you really want, mortgages for older buyers could give your house hunt a whole new lease of life.
If you’re coming up to retirement age, of if you’ve already hung up your work boots for good, having access to a range of good quality mortgage products could help you to secure the home you’ve always wanted. Find out more about house hunting in Norfolk, or start searching for your dream home, by exploring our site today.