I hate to think that I might be part of Generation Rent but I’m quickly heading that way and wonder whether I will ever be able to buy my own home. Living in the South East means that property prices are so high as to be almost out of my reach and yet I am paying more in rent than I would on a mortgage – if only I could get a mortgage I would actually have more spare cash at the end of each month than I do now paying rent. The mortgage lending criteria are so stringent now though that I stand little chance of getting a home loan unless I can come up with a large deposit and that looks unlikely unless I win the lottery or inherit some money from some long-lost auntie I didn’t know I had. Or maybe guarantor loans are the way to go to raise the deposit – if only I could persuade my parents to act as guarantor.
Regardless of where you’re moving to, or if you’re moving yourself or hiring a removal company, moving to a new house is pretty stressful. In fact, it’s listed as one of the most stressful things to do after having a baby and organising a marriage (or getting a divorce). You know it is going to cost a lot of money, you don’t have to be an accountant to grasp the financial situation, but If you want it to go as smoothly as possible but not cost the earth, you’ll want to read our key do’s and don’ts:
We all tend to think that first time buyers have the hardest job persuading lenders that they are a good risk when it comes to a mortgage but are banks and building societies equally reluctant to lend to older applicants? This seems counter-intuitive as older borrowers are likely to be more used to handling their finances and budgeting properly but it seems it is now harder moving house as you get older so what could be making lenders reluctant when it comes to older borrowers.
Many banks and building societies have made their lending criteria more stringent for borrowers approaching retirement age and some have even started to put a “maximum age” cap on their mortgage deals. This has resulted in some older borrowers struggling to secure a large mortgage for their new home, even when they have solid financial circumstances and a range of assets that more than cover the value of the mortgage. It has also led to accusations of ageism on the part of some lenders due to the restrictions they have placed on older borrowers that take little account of individual situations.