Therefore, as a vendor, you should be aware of buyers and how they are behaving and engaging with the market. The more buyers there are, the better the news is for vendors. Not every buyer is going to have an interest in your home, but if there are a lot more people looking to buy property in your area, it stands to reason you have a higher chance of selling your home.
With people living longer in the UK, there could be more elderly buyers looking to purchase a property. While this is a time of life, many people will look to downsize or sell-up, some people will still be active in the market.
Lenders offer more options for elderly buyers
The news that mortgage options for people of retirement age are on the up is a piece of excellent news for vendors. Numerous mortgage lenders have reviewed their lending criteria, offering more options that suit the budget and needs of the elderly.
In seven months, beginning in July of last year, there has been a surge in retirement interest-only mortgages for older borrowers. In July of 2018, there were five options in the market, but by February of 2019, the figure reached 38.
There has also been a significant increase in the lenders operating in this market. At that time, only two lenders provided this style of mortgage, but by February of this year, 12 lenders were looking to offer elderly buyers with an interest-only mortgage. Banks and building societies are also more active in this market, providing mortgages that run beyond the standard state pension age.
Lenders want to reach more buyers
Property buyers who require a mortgage to last until they are between 80 and 84 years of age can choose from more than 1,000 loans. Five years ago, this would have been unthinkable. Mortgage lenders were not interested in offering loans to people of this age group, but there has been a change in firms’ approach and in modern society.
The Financial Conduct Authority, the FCA, has played a role in this development. In March of 2018, the FCA reclassified retirement interest-only loans, regarding them as standard mortgages. This move was taken to inflate the options held by older borrowers.
Banks, building societies and lenders also find themselves in a competitive market. These organisations are keen to welcome new customers and generate new business. The ageing population provides a market firms want to reach, so it is no surprise that firms are competing for this custom.
Darren Cook, holds the position of Finance Expert at Moneyfacts, and he said; “The scaling back of strict criteria around the maximum age at the end of a mortgage must be a welcome relief for those borrowers who may have reached the end of their mortgage at 65 on an interest-only mortgage and have had few options available to turn to.”
If you are selling your home and need assistance, contact Austin Property Services, and we will be more than happy to assist you.