13th November 2015
Building societies are to attempt to fight the increasing needs for lending into retirement, by taking a look at upper age limits for mortgages as part of a package of reforms.
The review is one of many actions to take proposed by the Building Societies Association (BSA). The trade body also plans to bring together the pension freedoms, inheritance, equity release, powers of attorney and existing age policies, ultimately to create a consumer guide for older borrowers.
The BSA plans to bring together Government and regulatory representatives to discuss how senior citizens are affected by changes in policy and regulation by forming a cross industry-alliance.
By 2034, the BSA says an estimated 25% of the population will be over the age of 65, while divorce rates, house prices and the abolition of a set retirement age all mean that consumers are buying houses later and repaying for longer.