New lending rules look set to make Britain’s mortgage drought permanent – hitting those of you trying to get on or move up the property ladder, says the Daily Mail’s Becky Barrow.
Under the new rules, lenders will be forced to make sure that a mortgage will not be granted, unless the borrower is able to repay it before their 70th or 75th birthday, and with a typical mortgage being for 25 years, this will inevitably create problems for people in their 50s.
So, if you’re over 50 and want to trade up to a bigger house or acquire a second home, you will need to show the lender that you are saving or are able to repay any outstanding capital when the mortgage matures.
Another crackdown will be on interest only mortgages, making it less affordable for first time buyers to get on the property ladder, where you would only pay this interest on the loan and not the loan itself.
Lenders have already begun cutting back on their interest-only deals ahead of these landmark changes.