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Eddie_George

I Got A Mortgage Aged 92: Tide Turns For Older Borrowers

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Older borrowers, who often have a range of incomes and whose circumstances can be complex, were suddenly too risky. Most banks just said no.
But now the situation is changing.
Numerous, lesser-known lenders – mostly smaller building societies and a few private banks – are prepared to offer mortgages to those in their late 60s, 70s, 80s and, yes, even their 90s.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11686590/I-got-a-mortgage-aged-92-tide-turns-for-older-borrowers.html

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This does make sense for the lender though - if they can draw up the right terms for themselves. When people are in their 90s - they don't feel they are 90, they feel they can keep going as normal (bar health). And this is the same at 80, 70, 60, 50 etc. In fact people don't realise they are past their peak earnings past 40, but still act like they are 25.

When my father bought his final car at 50 - he, nor did we, realise that would be his final car (job changes, and drop in earnings), 16 years later.

Edited by 200p

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The society’s underwriter, Phil Townsend, said mortgage applicants in their 70s typically had three motives to borrow: “They either want to raise money for children or grandchildren; or they want to raise cash for a buy-to-let property to generate income, or they want to buy a holiday home for themselves and their family to enjoy.”

:rolleyes:.

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The deal looks like equity withdrawal, with some dubious rewording to fool people who, after many years, have slow latched on that equity release is a very expensive scam.

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I know of a couple of pensioners (both in their mid 80's) who are downsizing... sold their house for £290k, which they owned outright, their new place cost only £150k but they bought it with a mortgage.

Why would they want to use their equity/savings to pay a mortgage??

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I know of a couple of pensioners (both in their mid 80's) who are downsizing... sold their house for £290k, which they owned outright, their new place cost only £150k but they bought it with a mortgage.

Why would they want to use their equity/savings to pay a mortgage??

Gift the money to kids/donkey. Take on a mortgage, which will die with you.

If the bank cannot see this then the directors deserve to be on he hook for the money.

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I know of a couple of pensioners (both in their mid 80's) who are downsizing... sold their house for £290k, which they owned outright, their new place cost only £150k but they bought it with a mortgage.

Why would they want to use their equity/savings to pay a mortgage??

Maybe they think the house value will increase at a rate higher than the mortgage rate?

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I know of a couple of pensioners (both in their mid 80's) who are downsizing... sold their house for £290k, which they owned outright, their new place cost only £150k but they bought it with a mortgage.

Why would they want to use their equity/savings to pay a mortgage??

I should add that I find th story not quite believable. The MMR would not allow this.

There's a possibility someone has mangled the details.

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Gift the money to kids/donkey. Take on a mortgage, which will die with you.

If the bank cannot see this then the directors deserve to be on he hook for the money.

It's not the banks problem, is the life assurers problem

Edit. Unless there's small print that secures said life insurance against their other assets

Edited by Si1

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The deal looks like equity withdrawal, with some dubious rewording to fool people who, after many years, have slow latched on that equity release is a very expensive scam.

You mean it doesn't allow you to pay off the mortgage, have a holiday and a car with a rainy day fund and still get to live in your own home like the fluffy adverts?

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You mean it doesn't allow you to pay off the mortgage, have a holiday and a car with a rainy day fund and still get to live in your own home like the fluffy adverts?

:lol:

Equity release is expensive for a reason. I can never understand those who claim it should be much cheaper; the risks, people living longer (sometimes the companies lose big time). And it's not a scam if you do a few minutes of research.

http://www.telegraph.co.uk/finance/personalfinance/10725991/Martin-Lewis-Five-unpleasant-truths.html

Some people want to eat their cake and then eat everyone else's future cake, via debt, fluffy adverts, HPI forever, BTL massiv.

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I can see these 70+ mortgages being targeted for mis-selling lawsuits a few years down the line. From the kids/grandkids when they see the Bank taking their inheritance. Especially if they sell to someone who is 80+.

Ludicrous and should be deemed illegal.

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This does make sense for the lender though - if they can draw up the right terms for themselves. When people are in their 90s - they don't feel they are 90, they feel they can keep going as normal (bar health). And this is the same at 80, 70, 60, 50 etc. In fact people don't realise they are past their peak earnings past 40, but still act like they are 25.

When my father bought his final car at 50 - he, nor did we, realise that would be his final car (job changes, and drop in earnings), 16 years later.

Not so sure you are right on peak earnings from a bloomberg report on Wikipedia "In 2009 peak income occurred between the ages of 40-55" My other observation is that period could stretch to the 60's for people with their own business as the absolute viability of the business long term isn't such a concern and you draw more out

Coupled with lower outgoings I would suggest that the real peak earnings (considering people enter the job market late after UnI) is probably 45 -60 even 65

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It reads like something from the Daily Mash...70 year old buys 30 year old wife a £400k kitchen.

Im not sure if the 70 year old is the bigger fool or the mortgage lender...whatever she's going to do with £400k...it aint going on a kitchen!

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It reads like something from the Daily Mash...70 year old buys 30 year old wife a £400k kitchen.

Im not sure if the 70 year old is the bigger fool or the mortgage lender...whatever she's going to do with £400k...it aint going on a kitchen!

£400k pays for alot of "plumbers" during those boring mid week afternoons......

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