Older borrowers are calling for the age cap on lending to be scrapped.
A new survey by more 2 life found that nearly two out of five over-55s believe there should be no maximum ages imposed by lenders while another 47 per cent believe lenders should base decisions on borrowers’ ability to pay rather than their age.
The more 2 life research reveals strong demand for new borrowing solutions specifically aimed at the retired – two out of three over-55s would like to see regulated lenders launching loans and credit cards for the retired.
The findings follow a growing emphasis upon pensioner finances in the UK, after Chancellor George Osborne enabled OAPs to dip into their cash pots, to spend or to invest as well as save. The property sector has already braced itself for wave of “granlords”, as older borrowers decide to enter the buy-to-let sector. Now, more 2 life is forecasting a “seismic shift” in the way people fund their retirement, with a strong potential demand for both equity release and other forms of financing.
Dave Harris, managing director at more 2 life, comments: “Pensioners and those in the run-up to retirement need flexibility and are entirely capable of making informed and sensible decisions as long as there are lenders willing to lend.”
“Retirement lending will be a growth area in the future as innovation in retirement income planning develops and it is one that the industry as a whole should be looking at now.”