Loaning to people over 65 years old was traditionally considered risky and insolvent. Older borrowers were, therefore, awarded mortgages rarely. However, the previous decade has experienced a change in perspective for most mortgage providers. Lenders have recognized some reasons to increase borrowers’ maximum age limits. These are:
1. Increasing life expectancy – People are more likely to live past their retirement ages.
2. High house prices – This means that many people opt for a longer repayment period.
3. The age at which couples get children is on a constant rise – More people prefer to own a home later in life.
The above reasons coupled with little wage growth and increasing average age of first-time buyers have necessitated lenders to loosen borrowing requirements. Such lending policies lead to questions about the sector’s viability and profitability in the long run.