Homebuyers in their late thirties and forties are being refused mortgages because they are ‘too old’.
Tough restrictions introduced in April have forced lenders to prove their customers will be able to afford to pay off loans.
Fearful of breaking the rules, banks are turning down applicants who are likely to be making repayments in retirement when incomes are lower.
A report released last night by a body representing 24 big lenders – including Santander, Nationwide, Lloyds and Barclays – warns that borrowers in their 40s are falling victim to the new regime.
A 45-year-old customer would be 70 before a standard 25-year loan was paid off. Even those in their late thirties seeking increasingly popular longer-term deals risk being knocked back.
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