Later-life mortgage lending options are expanding.
It used to be that if you were 50 or over, your chances of obtaining a mortgage were limited. However, the market over recent years has changed and mortgage lending options for the over 50s has greatly expanded.
The reasons for this are threefold:
- The change to the age of retirement.
- The rise of the ‘Bank of Mum and Dad’.
- The cost of purchasing a property.
People are living healthier lives and working for longer and are in a much better position to finance a property purchase much later into their lives than before. The rising cost of property has meant children have relied on family members to help them out with finding a deposit. This has been done through remortgaging and second charges to release equity in existing properties.
There is also an increase in the number of people over 50 who are first time buyers and many lenders have created ranges that are aimed specifically at them.
One such lender is Ipswich BS. Their range includes products that have no maximum age limit and offer up to 40 year terms.
Ipswich has recently launched a new 5 year discounted mortgage in addition to the 2 year discounted options they already have. Loans for 75% LTV can be arranged for up to £500,000. For remortgage applicants, a free valuation is also included on properties up to £1million.
Whether you are purchasing or remortgaging, different fees apply so please check with us here at Deal Direct for further details.