The Telegraph pointed out that the Brits are living and working longer than years ago. As there is no official retirement age, increasingly more people aged 65 and over are still in work and trigger the trend of running their own micro-business, which account for 95pc of the British companies.
Considering those facts, it seems surprising that the financial services community does not adapt to the current developments – in actual fact, they are heading in the wrong direction when it comes to lending to mature people. The financial crisis decreased the willingness to borrow into retirement and restrictions have increased. Recently, many mortgage providers decreased the maximum age borrowers can have by the end of their mortgage decisively from 80 to 70 years. Moreover, borrowers aged over 75 must pay price premiums, compared to their younger fellows.
Consequently, older people have less mortgaging possibilities, which leaves them often only the option for a more costly equity release loan. However, Stonehaven Ltd. introduced an ‘Interest Select Lifetime Mortgage’ option to the equity release market, which helps reducing overall costs to the borrower. Here, monthly interest payments are possible, which prevents an ‘interest roll up’. This option may be a suitable solution for older Brits who need some extra cash at fair lending conditions.
Stonehaven’s ‘Interest Select Lifetime Mortgage’ Fights Age Discrimination on the British Lending Market
