While much has been made of IMF managing director Christine Lagarde’s comments on the potential for a house price crash should the UK exit the European Union after a referendum next month, a surprisingly small amount of news coverage has been given to additional IMF comments on the UK’s mortgage rules.
If you’re planning to buy a home, one of the most difficult parts of the process is saving up for a deposit. Most mortgage lenders will ask for anywhere from 20 per cent or more of the property’s value as a deposit, which means a lot of saving for most people – unless you can get yourself a 100 per cent mortgage.
The world of mortgage products is forever expanding, as financial providers adapt their lending models to fit modern lifestyles. One group for whom the future’s looking particularly bright is older borrowers. Many lenders are increasing their maximum ages to reflect changes in life expectancy and financial stability, and in fact one lender recently revealed that they would be offering mortgage products to borrowers up to the age of 85.