Age UK calls to 'lift age limit' on mortgages

A regulator warned that those on interest-only mortgages are facing a "wake up call". Credit: John Stillwell/PA Wire

Age UK's charity director general has called for banks and building societies to lift "arbitrary age limits on loans" after a financial regulator warned that up to half of interest-only borrowers will not have enough money to pay their loans back.

Michelle Mitchell said that the age limits prevented older people who could afford a mortgage from extending the term of their loan.

She said: "Decisions on lending should be based on whether an individual is able to repay a loan not on an outdated vision of what it means to be older. It is also important to have access to targeted, independent advice for those older people who are experiencing difficulties."

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Interest-only mortgage warning

The City watchdog has warned that a quarter of a million homeowners with interest-only mortgages will be unable to pay off their mortgage at the end of its term.