A Breath of Fresh Air for Ageing Mortgage Borrowers

Ageing borrowers

Smith Partnership, one of largest firms of solicitors in the East Midlands, is encouraged by the range of new mortgage schemes now on offer to both first time buyers and older borrowers – offering a breath of fresh air since the economic downturn in 2007 and subsequent tightened lending.

The housing market in the United Kingdom is always in the spotlight as a barometer when looking at the state of the world economy. With this in mind, the conveyancing team at Smith Partnership is heartened to see that house prices have now risen to an all-time record level in 9 out of 10 regions.

Gurpinder Ghuman, Conveyancer at Smith Partnership commented: “The conveyancing department has seen an increased demand to act for house purchasers which is a good indication that the latest house sale figures are accurate, and that the housing market is going from strength to strength.

The market is poised to become more popular by recent increases in the upper age limit of borrowers. An example being Halifax bank; they have increased their terms to facilitate mortgages for their customers up to the age of 80. Nationwide Building Society have followed suit, and have increased their limit to 85 from July 2016. This has been a refreshing change from many people who were previously unable to borrow or extend their existing mortgages.

“This is a pinnacle move which reflects Britain’s ageing population, and acknowledges that most of us are now working until the age of 70. The increased age limit significantly improves the affordability of loans for older borrowers.

"Of course, no one likes to be accused of “tempting fate” and it is important to walk that fine line between optimism and realism. However, when the figures are encouraging, and the banks/building societies support this by putting more faith into borrowers, it seems safe to say that things are looking up.”

Gurpinder is a Conveyancer in the Residential Conveyancing department.

Contact Gurpinder by email gurpinder.ghuman@smithpartnership.co.uk.