The Nottingham Building Society has warned that mortgage and remortgage customers in their 40s are being caught out by age restrictions.
The Nottingham surveyedmortgage brokers and found thatnearly two out of five (37%) have seen a rise in customers over 40 struggling to be approved for mortgages or remortgages.
And the research shows the problems will continue this year withmore than a third (34%) of those surveyed expecting the number of over-40s struggling to secure home loan deals will rise again in 2016.
Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said: “It is baffling for people in their early 40s to be told they are too old to have a mortgage and particularly so when the average age of first-time buyers is rising which means some could even be first-time buyers.
“There is no doubt creditworthy customers are being rejected and some are facing restrictions on their choice of mortgages.
“However there are options out there for older borrowers and the key to ensuring they get the most appropriate mortgage is to search the whole market. If your existing lender is restricted on what it can do there are other options.”
The scale of the issue is underlined by research among customers who have been turned down for mortgages or remortgages in the past two years – around 17% of those who have been rejected say their age was a major reason. That rises to 21% among those aged 45 to 54.
Around one in four of those whose age counted against them say they were not able to borrow for long enough while the rest were turned away because either they or their partner were too old.
The Nottingham’s research shows the main reason for being turned down for a mortgage or remortgage is a poor credit history – 38% of those who were turned down say their credit record counted against them while 19% were rejected on grounds of affordability.
