Is it Hard to get a second MortgageIt'?s hard to get a second mortgage?
When you retire, can you get a mortgage? Without expecting any difficulties with the loans, he first turned to his own savings banks, but without pleasure he turned to the three savings banks with which he saved, just to avoid further disappointments. "Because I' m 78, they can't borrow me any cash.
A company said it was state law at least two years ago. Mortgage market analysis came into force in April 2014, forcing bankers and home loan associations to be much stricter about who they grant credit to. Some of the reasons for the hard new regulations date back to the last ten years, when the credit crunch was partly the result of large-scale simple credit.
"A major part of the audit was the retiring loan," he says. "There is no requirement that creditors cannot extend their loans beyond pensionable life, but that they must make sure that the mortgage is accessible at first and later. Creditors are responsible for interpreting the regulations and how they are implemented, and the regulatory authority does not prescribe a limit regarding this.
" Yet even before the stricter mortgage regulations were introduced, creditors had started to tighten their credit eligibility requirements, and for the vast majority of creditors this implied a reduction in the maximal ages to which they would grant loans. "Consequently, most creditors now prescribe a ceiling of 70 or 75 years at the end of the mortgage term," Hollingworth states.
Meaning that there are no loans to older people, even if they can pay back their debts? "Meanwhile, the Bath Building Society has no upper limit to which it can grant credit, and Metro Bank has also deleted a specified upper limit and prefers to proceed on a case-by-case basis. "So there should be an option for you, Dr. Padfield, and any older people who need mortgage financing.
"Creditors can, however, also shrink from granting credit if they plan to use it only as a very short-term bridge facility," Hollingworth cautions. There is a need for a re-entry into the bank world where credit decision-making is done at grassroots level and not on the basis of a multitude of prescriptive laws and procedures laid down by headquarters.