Eddie_George Posted June 21, 2015 Share Posted June 21, 2015 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 Quote Link to comment Share on other sites More sharing options...
long time lurking Posted June 21, 2015 Share Posted June 21, 2015 The cynic in me says mortgage lending must be collapsing big time as this must really be scraping the bottom of the barrel Quote Link to comment Share on other sites More sharing options...
Maynardgravy Posted June 21, 2015 Share Posted June 21, 2015 The cynic in me says mortgage lending must be collapsing big time as this must really be scraping the bottom of the barrel More like scraping the bottom of a 6 foot pit. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted June 21, 2015 Share Posted June 21, 2015 Nothing to add other than some faces of wronged boomers. Life is so unfair, boohoo. Quote Link to comment Share on other sites More sharing options...
long time lurking Posted June 21, 2015 Share Posted June 21, 2015 More like scraping the bottom of a 6 foot pit. Stealing the inheritance more like Quote Link to comment Share on other sites More sharing options...
200p Posted June 21, 2015 Share Posted June 21, 2015 (edited) 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 June 21, 2015 by 200p Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 21, 2015 Share Posted June 21, 2015 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.” . Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 22, 2015 Share Posted June 22, 2015 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. Quote Link to comment Share on other sites More sharing options...
nome Posted June 22, 2015 Share Posted June 22, 2015 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?? Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 22, 2015 Share Posted June 22, 2015 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. Quote Link to comment Share on other sites More sharing options...
Guest Posted June 22, 2015 Share Posted June 22, 2015 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? Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 22, 2015 Share Posted June 22, 2015 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. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 22, 2015 Share Posted June 22, 2015 (edited) 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 problemEdit. Unless there's small print that secures said life insurance against their other assets Edited June 22, 2015 by Si1 Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 22, 2015 Share Posted June 22, 2015 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? Quote Link to comment Share on other sites More sharing options...
Venger Posted June 22, 2015 Share Posted June 22, 2015 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? 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. Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted June 22, 2015 Share Posted June 22, 2015 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. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted June 22, 2015 Share Posted June 22, 2015 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 Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted June 22, 2015 Share Posted June 22, 2015 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! Quote Link to comment Share on other sites More sharing options...
Exiled Canadian Posted June 22, 2015 Share Posted June 22, 2015 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...... Quote Link to comment Share on other sites More sharing options...
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