Is 40 Too Old For A Mortgage?

Experts have warned that borrowers as young as 40 are struggling to get approved for mortgages because of their age.

Lenders are wary to lend to older borrowers as they see them as a riskier prospect once they retire – therefore resulting in those who are in their 40s who want to borrow past retirement end up being rejected.

A survey of customers found that 17% had been turned down for a mortgage because of their age. This rose to 21% among borrowers aged 45 to 54.

A quarter of those who had been turned down said it was because they were not able to borrow for long enough, and the rest said it was because either they or their partner were too old.

Some cases reported that borrowers were turned away from a mortgage because one partner was deemed too old or was not paying into a pension.

David Gascoyne, Sales and Lettings Manager of Residential Estates said “with the age of first time buyers rising, it is baffling as to why people in their early 40s are being told they are too old to have a mortgage. Lenders will be losing out on creditworthy customers because of this.”