Lenders have imposed tight age restrictions on elderly borrowers who have been
unable to pay off their mortgage before reaching retirement.
Falls in their investments as a result of the worst economic crisis in a
generation mean many have been left with ongoing debts. As many as one in
six retired home owners still have a mortgage, according to latest figures.
It means 1.35 million people in retirement still have an average mortgage of
£50,100, an increase of £8,000 from a year ago, according to Scottish
Widows.
Lenders have cut the maximum age they will lend to amid the credit crisis,
with many introducing a cap of 65 years old.
As a result, retired home owners with a mortgage are struggling to find new
deals and face being evicted from their properties if they do not have the
cash to pay off their remaining home loan with one lump sum.
Politicians and mortgage experts said it is the latest evidence of how banks
are tightening their lending criteria amid the recession despite billions of
pounds in financial support from the taxpayer.
They said borrowers over 65 had been repeatedly turned down by high street
lenders because of their age.
Grant Shapps, shadow housing minister, said: “Despite years of hearing Gordon
Brown boast …
Read the original article at Telegraph
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Tags: Banks, cash, deal, debt, finance, financial, Investments, mortgage, pay, Recession, retirement, taxpayer, UK
