Many baby boomers aged over 65 with interest-only loans face losing their homes in UK, reports Sarah Davidson
We all recognise the plight of the first-time buyer trying to get their foot on the housing ladder but increasingly, pensioners face just as serious a battle simply to stay put. More than 100,000 homeowners aged over 65 are on interest-only mortgages and face losing their home as they have no way to repay at the end of the term. With rapidly dwindling options experts are warning that Britain faces a mature mortgage crisis.
Five years ago mortgage lenders offered loans to people well past the age of retirement but new rules intended to stop another financial crisis have seen mortgage options for borrowers heading into later life virtually dry up.
"Many of my clients are affluent, educated individuals who have a clean credit history. Their circumstances mean they want to borrow for just five more years but they're finding it can't be done competitively," says Steven Smith, a mortgage consultant at Springtide Capital.