blog mortgage118

Tag: Suffolk Building Society

  • Understanding Age Myths in the Mortgage Market

    Understanding Age Myths in the Mortgage Market

    Recent insights reveal that many older borrowers are misinformed about age restrictions in the mortgage market, with two-thirds of brokers noting that these misconceptions persist. This is significant as enquiries from borrowers over 55 have been on the rise, indicating a shift in the demographic seeking mortgages.

    TL;DR: Over 64% of brokers report that older borrowers incorrectly believe lenders impose age restrictions; this affects the growing number of over-55s looking for mortgage options.

    Why Do Older Borrowers Think Age is a Barrier in the Mortgage Market?

    According to a study by Suffolk Building Society, 64% of mortgage brokers believe that older borrowers still assume that age restrictions are a standard practice among lenders. This perception may stem from outdated information or a lack of awareness regarding current lending practices. The reality is that many lenders are adapting their policies to accommodate older borrowers, allowing for more flexibility in mortgage terms.

    What Are the Trends in Later Life Borrowing?

    The research indicates that 60% of brokers have seen an increase in enquiries from later life borrowers in the past year. This suggests a growing acceptance of borrowing later in life, with half of the applications at Suffolk Building Society now coming from individuals aged over 55. The reasons for seeking mortgages vary widely, including remortgaging, funding home improvements, or assisting family members with deposits.

    What This Means for Older Borrowers in the Mortgage Market

    For older borrowers, these findings highlight the importance of seeking professional advice and challenging outdated assumptions. Many are unaware that options beyond equity release exist, with 57% of brokers reporting that clients believe equity release is their only choice. Furthermore, 54% of brokers noted that older clients often do not realise that pensions and investments can be leveraged to demonstrate affordability, which could open up more opportunities for securing a mortgage.

    What Should Brokers Do?

    Brokers play an important role in educating older clients about their options. With 66% of brokers noting that clients often reach the end of their mortgage term without a plan, it is essential for brokers to proactively address these concerns. By providing clear information and guidance, brokers can help clients navigate the mortgage market more effectively, ensuring they are aware of the possibilities available to them.

    Frequently asked questions

    Are there age restrictions for mortgages?

    No, many lenders do not impose strict age restrictions, and older borrowers can often secure mortgages without issues.

    What are common reasons older borrowers seek mortgages?

    Older borrowers often seek mortgages for remortgaging, home improvements, or to assist family members financially, such as providing a gifted deposit.

  • Older Borrowers and Mortgage Market Options: Key Insights

    Older Borrowers and Mortgage Market Options: Key Insights

    Recent findings from Suffolk Building Society reveal that many older borrowers significantly underestimate their mortgage options, which has implications for the mortgage market. A substantial number of brokers report that older clients often believe their age hinders their borrowing potential, leading them to consider equity release as their only viable option.

    TL;DR: 57% of brokers indicate that older borrowers think their age is a barrier to obtaining a mortgage; this misconception limits their awareness of available options.

    What Do Brokers Say About Older Borrowers?

    According to the survey, 57% of brokers noted that older borrowers feel their age works against them. This perception has resulted in many assuming that equity release is their sole option for financing. Additionally, 54% of brokers highlighted that older clients are often unaware of the various methods available for proving their affordability.

    What Drives Demand for Later Life Lending?

    Demand for later life lending remains robust, with Suffolk Building Society reporting that only 3% of brokers have seen a decline in inquiries from older borrowers. The primary reason for seeking later life lending, cited by 66% of advisers, is reaching the end of a mortgage term without being prepared to repay the outstanding balance. Other common motivations include remortgaging existing mortgages and raising funds to assist family members, both of which were mentioned by 47% of brokers.

    What This Means for the Mortgage Market

    For older borrowers, the findings indicate a pressing need to challenge outdated assumptions regarding age and borrowing capacity. Brokers are encouraged to initiate conversations about later life lending, explaining how lenders assess retirement income and other assets. With over half of applications to Suffolk Building Society coming from individuals over 55, it is important for brokers to demonstrate that age alone does not preclude them from accessing mortgage options.

    Frequently Asked Questions

    What options do older borrowers have besides equity release?

    Older borrowers can explore various mortgage products, including remortgaging existing loans and securing new mortgages based on retirement income and other assets.

    How can brokers assist older borrowers in understanding their options?

    Brokers can help by educating clients about the different means of proving affordability and the mortgage products available to them, regardless of age.