Age UK: Lenders must work with older borrowers
Each year between 2017 and 2032 40,000 house-holds aged 65 and over will have interest only mortgages which are due to mature.
In addition 25,000 households aged between 50-64 will see their interest only mortgages mature, rising to 130,000 households in 2032.
Michelle Mitchell, charity director general at Age UK, said: “With one in ten borrowers having no plan as to how they are going to pay off their loan – there is simply no room for complacency for lenders or older consumers.
“We call on banks and building societies to lift their arbitrary age limits on loans which unjustifiably prevent many older people who could afford a mortgage from extending the term of their loan.
“Decisions on lending should be based on whether an individual is able to repay a loan not on an outdated vision of what it means to be older.”
Age UK added that it believes it is important that older people have access to targeted, independent advice when experiencing difficulties.