The older generation have been put aside for consideration in a majority of financial institutions and mortgage companies while applying for mortgages. This is due to the age factor but there are various facts that are not often put to mind when dealing with older clients. The age of 75 is often the threshold for mortgage companies with many people being above that age in the society. It is vital for the industry to offer a chance to everyone as older persons have as many needs as their younger counterparts. There has been an increasing demand in the need for the loans therefore banks and other lending institutions have loosened their sanctions against such loans.

Reasons for lending older persons

One of the reasons why older persons should be offered a chance in the mortgage industry is due to their life experience. Over the years, these persons have gained knowledge on market trends and spending habits and with this in mind, they are somewhat more sure to spend their mortgages more wisely. The more time that they have in their hands (after retirement) is even more reason to offer their loans. This is because they are able to plan more for the loans that they are offered by the mortgage companies.

Older people who own homes, regularly need home improvement services. This is another reason why the industry should embrace their need for loans due to the high demand that will in turn lead to high returns upon repayment. There are medical and other emergencies that are unforeseen by these individuals in their old age. Emergency funds can be beneficial in such instances as it prevents them from being indebted.

Older persons happen to be some of the high spending individuals in the economy. Cruises, holidays, and regular trips are common activities and with the aid of mortgage loans, they are able to comfortably handle all these without the need to work. There is also a high need for construction of holiday homes where they can rest upon retirement without disturbance by younger and rowdy persons.

Roll up mortgage strategies are also common feature in todays old age mortgages. This is where a large amount of cash is released from a property owned and once the client opts to sell the home or passes away or, the house can be sold and the cash used to repay the loan. This is another method of obtaining a loan from an institution with a home as the guarantee.

Policies employed

Due to the rise in the need for mortgage loans by older people, there are a number of polices that have been employed. A common policy is making use of a security, such as a home owned, to secure the loan offered. The other policy is evaluation of the individuals life span based on health status, area of work and residence in order to understand the risk of death. These have been successfully used by loan providers to allow for applications by people over 75 years old.

Happy Client

The Mortgage Bazar That Likes To Say Yes

I applied for a loan at the age 80 and was granted. My retirement life since then has been comfortable six years on and I have had no need to work for a living. I am glad I sought the services
Alexandra Owen

Happy Client

The Mortgage Bazar That Likes To Say Yes

Old age has never been happier since I got the loans in needed to build a holiday home. I have used the home to earn income and I am paying the loan back with time
Evan Haynes