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.