The Building Societies Association (BSA) announced that they are reviewing age limits on mortgages as more customers demand longer mortgage terms in order to keep monthly costs down. Older homebuyers may soon find it easier to get a mortgage as many lenders currently insist mortgages are repaid prior to the borrower’s planned retirement dates.

At the same time, increasing life expectancy and factors such as high house prices, student debts and a rise in the age at which couples have children means many people are tending to buy a home later and opt for a longer repayment term.

This is one of a number of recommendations in a report called “Lending into Retirement” launched at a recent BSA event.

This prompted me to review Mortgage Required’s requirements for clients borrowing money beyond their normal state retirement age. In future, all clients will be made aware of their estimated mortgage balances at retirement along with the in depth review of their estimated income in retirement we already carry out. According to statistics from and, salaries start to fall way before retirement age, as individuals tend to take up part time or less demanding positions, reducing by about 44% when people actually retire.

People tend not to think about their financial position 20 years from now, instead they focus on the “here and now.” It’s our job as Mortgage Advisers to make sure people are aware of their future commitments and their ability to pay these loans on their pension income and also to review the likelihood of those clients continuing to work.

I am all in favour of Building Societies moving with the times, as long as we as an industry keep one eye on potential trouble down the line!

For more information about Lending into Retirement, speak to a mortgage adviser on 01628 507477 or contact us.


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