Two-thirds of older borrowers assume lenders have age restrictions, Suffolk BS finds
The survey found 64% of brokers believed this misconception persisted among older borrowers, while 57% said clients thought equity release was their only option.
Almost two-thirds of brokers believe older borrowers assume all lenders impose age restrictions, according to research from Suffolk Building Society.
The survey found 64% of brokers believed this misconception persisted among older borrowers, while 57% said clients thought equity release was their only option.
Meanwhile, 55% had worked with older borrowers concerned about whether they could secure a sufficiently long mortgage term, and 54% said clients were unaware of the different ways affordability could be evidenced, including through pensions and investments.
The findings come as brokers report growing demand for later life lending, with 60% saying they had seen an increase in enquiries from over-55s during the past 12 months.
Just 3% reported a decline in enquiries over the same period.
Coming to the end of a mortgage term without being ready to repay the outstanding balance was the most commonly cited reason for seeking a mortgage later in life, reported by 66% of brokers.
Remortgaging and raising money to help family members, such as through a gifted deposit, were each cited by 47%.
A further 43% pointed to home improvements or debt consolidation, while 31% cited significant life events such as divorce resulting in borrowers needing a mortgage for longer.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “Borrower perceptions have not necessarily kept pace with the innovation we’ve seen in the mortgage market.
“If many over-55s still assume their age will count against them, then now is the time for brokers to challenge those outdated views and help clients understand the options widely available.
“Rather than waiting for older borrowers to rule themselves out, brokers can start the conversation about later life lending, explain how lenders assess retirement income and other assets, and show that being over 55 is not, in itself, a barrier to borrowing.
“In fact, some older borrowers may present a more reliable lending proposition than they realise and a valuable revenue stream for brokers.”
She added: “Borrowing later in life is increasingly becoming the norm – half of our applications now come from people aged over 55 – and the reasons for doing so are as varied as the borrowers themselves.
“For brokers, that presents multiple possibilities. By helping older clients understand that they may have more options than they realise, and that age alone does not have to stand in the way, brokers can build stronger relationships, tap into a growing area of the market, and feel good about what they’re doing at the same time.”
Related
Brokers cite affordability checks as biggest barrier to expat lending – Suffolk BS
47% of aspiring homeowners do not expect to ever buy a property – Leeds Building Society
88% of advice firms put client outcomes at centre of technology strategy, study finds
Air and Mortgage Brain partner to support holistic later life lending advice
Financial services support remains uneven for 16.8 million disabled consumers, report warns
Dip in mortgage activity persists in Q3, Stonebridge finds
Remortgage searches surge 40% as borrowers return to market in September – Twenty7tec
8.6 million UK adults sit outside advice market – the lang cat
Equity Release Council and AMI to host Later Life Lending Summit North
One in five remortgage borrowers consider variable rates as payment shock looms, data reveals
OneDome Growth Partners launches free regional Discovery Days for brokers
