Latest market news

How is the later life mortgage market adapting to the growing demographic aged 60 upwards?

July, 14th 2017

Borrowing into your retirement
By 2050, population figures show there will be over eight million people aged 80 or above in the UK, which is more than double today's figure.1 Improved lifestyle and healthcare, particularly for those aged over 65, is the main reason for the continual increase in life expectancy, in the UK.2

The subsequent change in population structure is likely to have implications for the mortgage market. Changes in the profile of borrowers have already become apparent. For example, the number of borrowers in their 70s taking out mortgages has jumped by 75 per cent, to 16,000, in the past five years.Clients looking to borrow in later life may find themselves making mortgage payments into their retirement, and therefore using their pensions and assets as repayment methods instead of income.

The baby boom generation, born immediately after the Second World War, is now reaching retirement age. Due to the nationwide increase in life expectancy, this generation may be more likely to remain active in the mortgage market into their retirement, than previous generations. This means that a larger wave of borrowers looking for lending in later life may soon enter the mortgage market. As a result we have seen more mortgage products become available for some older borrowers, in particular, those with sufficient assets.

Why might you choose to borrow in later life?
There are a number of reasons why individuals nearing, or of pension age, may look to take out a mortgage.

For some, although selling their property and down sizing to a smaller one is an option, many will wish to stay in their current home in retirement or move to another property of a similar size. However, this can be a challenge, partly as a result of the fact that there are few houses on the market suitable for older people who do not wish to downsize, after their children have flown the nest4.  Some borrowers may therefore, wish to secure a mortgage product that allows them to fund improvements on their current home instead.

Alternatively, they may find an ideal property at home or abroad, and are looking to purchase it as a new home, in which to spend their retirement. In these cases a mortgage can be taken out  in order to give them sufficient liquidity to help achieve this.

Another potential reason is that with the equity tied up in their home, older family members may wish to support younger family members; either to get onto the housing ladder or help with school or university fees. A mortgage can be taken out on their property, as long as it is suitable to their circumstances, which allows them to release some of this equity.

Interest-only mortgages
The number of maturing interest-only mortgages is set to grow over coming years5. Some older borrowers, with this type of mortgage, may be looking to pay this loan off by remortgaging. As an older borrower there is more opportunity to demonstrate good spending habits through a longer credit history. Some lenders prefer this as they are more likely to meet the the lender's affordability criteria and be suitable for a mortgage4.

We have extensive experience in assisting clients with complex circumstances, to arrange their mortgages. We have unlimited access to the market and strong relationships with a range of private banks and niche lenders, which means that we may be able to help you where others cannot.

Click here to read our case study on how we secured funding of £1.7 million, for clients in their late 60s, who wanted to remortgage.

If you are nearing or over the age of 60 and would like to know which mortgage products might be available to you, call us on 020 7519 4985 or send us an email to find out more. One of our specialist Mortgage Managers would be happy to talk through your options with you.

  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.13%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 4.74%
    The overall cost for comparison is 4.17% APR

    1.13%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 0.99%

    Period: 2 Years

    Rate will revert to the lender's standard variable rate currently 3.74% which will not go below a floor of 3.49% thereafter
    The overall cost for comparison is 3.36%

    0.99%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

Latest Articles/News

Case Studies

Need a large remortgage but have complex requirements? We have the banking... READ MORE

latest/related news

At midday on 3 August, the Bank of England announced that it would not be i...READ MORE

press release

To support the next stage of the group’s strategic growth the board of larg...READ MORE

press coverage

Jersey commercial market is focus for refinanced Polygon

Guernsey Press ,September, 12th 2017READ MORE

LML BROCHURE

Download our brochure to find out more about Largemortgageloans.com and what we can offer

Click to Download

Rate Alert

Client Testimonials

"Everything was excellent. My Mortgage Manager is a lovely young man, and I can...
READ MORE

AM, AM

"My Mortgage Manager was very helpful. I have done a few mortgages with them....
READ MORE

DM, DM

"Everything went how I wanted it to go. The lender took a long time, but my...
READ MORE

JW, JW

"My Mortgage Manager was very attentive, he always kept us informed throughout...
READ MORE

CH, CH

Logo
STAY CONNECTED WITH US:
  • Facebook
  • Twitter
  • Linkedin

London Office

Tel: 020 7519 4900
Fax: 020 7519 4910
Email: info@largemortgageloans.com

Guernsey Office

Tel: 01481 234527
Fax: 020 7519 4910
Email: info@largemortgageloans.com

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt

Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: Bridge House, London Bridge, London, SE1 9QR. 2005-2017. All rights reserved.