Lenders often place age limits and restriction on those who want to borrow for remortgaging when they are on the edge of retirement. Here’s a guide for figuring out how these limitations work.
Age Limitation History
In 2007 and before, a lot of banks would allow lending and remortgage options to people as old as 85. This meant that it wasn’t too hard to get a loan if you were in your 60s. In fact, there was a story from several years ago about a man who was 102 who had actually been granted a 25 year remortgage loan.
But this environment is changing in the UK. Around a year ago, a new trend emerged with lenders cutting down on the maximum age they would hand out to people seeking a remortgaging on their home from 80 down to 75.
Many major banks are withdrawing support for those who want to remortgage in their 60s during retirement, instead focusing on age ranges that are older and more in a retirement range. Many people say that the reason why this happened is due to the financial credit crisis that happened din the year 2008.
During the economic downturn, many banks became more paranoid about offering lending options to people who are older because of the perceived risk. But this definitely changed how banks tend to approach older borrowers without a doubt.
It’s not just one lender either, multiple lenders in the UK have all decided to take age limits that used to be in the mid-80s and higher and taking them back down 10 or 20 years, which affect not only the absolute limit you can get for lending, but this also affects how easy it is to get a loan if you are just a little younger than that.
The Importance of Using a Broker
This isn’t to say that it’s impossible to get a remortgage if you are an older person. But what this does mean is that it can be tricky, and the landscape of remortgaging can be complicated and difficult in the UK. AS a result, it’s important to get as much guidance as you can.
It’s really not a good idea to try going it alone. You need a professional to help you navigate this landscape. Someone who understands the UK remortgaging market, who can tell you exactly what to try, what to stay away from, and what sorts of strategies you should use as well as what you should expect to happen throughout your process.
It helps especially to find brokers who have proven experience and endorsement.
If you need more info please visit us @ www.mortgageadviceservices.co.uk or call us on telephone number 01332 257 087 for a free quote today. Labels: mortgage advice, mortgage advice nottingham, the re-mortgage process, whole of market mortgage advisers