Pensioners struggle if they need a loan

About 1.6m retired people still hold a mortgage, but their major problem is not scraping together money to keep making a monthly mortgage payment. Instead, their largest problem is finding a building society or bank that is still willing to offer a loan to pensioners.

Many lenders have a very strict age limit that they adhere to when they offer mortgages to those who have retired that at the most extends to 75 year olds. This often hurts pensioners because they become trapped and forced to stay with their current lender. Therefore, they are not able to get some of the better mortgage rates on the market that younger borrowers can get even though they have a stable income and good credit.

MGM Advantage, the annuity expert, estimates that about 950,000 retires have at least £25,000 left on their mortgages and another 151,000 have more than £100,000 left to pay on their mortgages. By the close of the decade it is estimated that the amount of mortgaged pensioners could be close to two million.

In the next seven years an additional 600,000 interest only mortgages are expected to fully mature, and it is anticipated about half of all of these borrowers are going to need more time before they can actually pay off their mortgages. It is expected that this will lead to a quick surge in the demand for long term mortgages available to pensioners and an increase in the shorter term deals that are offered to them.

However, even though pensioners clearly need help and have the income to afford it many lenders are continuing to reduce their lending ages because they do not think it is responsible lending even though life spans are getting longer and many people are choosing to work into their retirement.

About 1.6m retired people still hold a mortgage, but their major problem is not scraping together money to keep making a monthly mortgage payment. Instead, their largest problem is finding a building society or bank that is still willing to offer a loan to pensioners.

Many lenders have a very strict age limit that they adhere to when they offer mortgages to those who have retired that at the most extends to 75 year olds. This often hurts pensioners because they become trapped and forced to stay with their current lender. Therefore, they are not able to get some of the better mortgage rates on the market that younger borrowers can get even though they have a stable income and good credit.

MGM Advantage, the annuity expert, estimates that about 950,000 retires have at least £25,000 left on their mortgages and another 151,000 have more than £100,000 left to pay on their mortgages. By the close of the decade it is estimated that the amount of mortgaged pensioners could be close to two million.

In the next seven years an additional 600,000 interest only mortgages are expected to fully mature, and it is anticipated about half of all of these borrowers are going to need more time before they can actually pay off their mortgages. It is expected that this will lead to a quick surge in the demand for long term mortgages available to pensioners and an increase in the shorter term deals that are offered to them.

However, even though pensioners clearly need help and have the income to afford it many lenders are continuing to reduce their lending ages because they do not think it is responsible lending even though life spans are getting longer and many people are choosing to work into their retirement.