More lenders should extend mortgage age limits: BSA

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More lenders need to lend to borrowers in their eighties and beyond, according to the Building Societies Association.

The BSA welcomes the FCA’s publication of an ‘occasional paper’ earlier today, which suggested firms should take older borrowers into account more with their policies and proposition. 

A BSA statement says: “It represents an important first step by the regulator in encouraging the lending community to respond to the changing demographics by broadening the range of products available to those in or nearing retirement.

“It also recognises the challenges of providing the services and support the older customer needs to continue to run their finances while also protecting them from financial crime and abuse.”

BSA head of mortgage policy Paul Broadhead says that over the last few years many building societies began offering mortgages that extend later into life.

He adds: “But this market will continue to grow dramatically and as we have repeatedly argued, other lenders will need to follow suit.

“The FCA cites research in its report that the share of borrowers aged 65+ is set to go from 1 in 6 currently to 1 in 4 by 2050. A third of babies born today can expect to celebrate their 100th birthday.”

Earlier this year the BSA commissioned research from the International Longevity Centre which found that mortgage debt in the over 65s is set to almost double, to around £40bn by 2030.

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