While mortgages are generally viewed as being relevant for younger buyers there has been an increasing number of older property owners who are applying for one. However it has been revealed this month that many of these older borrowers are being targeted with less than favorable lending rates or simply being refused outright.

The new lending rules that came into effect from April this year after the Mortgage Market Review (MMR) were seen to be more stringent on whom the lenders would provide mortgages to but older borrowers were overlooked in the fallout when these new rules came into practice. Now it has been revealed that it is even harder for older borrowers to get a mortgage.

Linda Woodall of the Financial Conduct Authority (FCA) explained that the rules set out in the MMR are actually not being applied correctly. Many lenders have set an age limit that they will allow the mortgage to run to even though many older borrowers can afford the repayments through a good pension income. Indeed, it is often that case that those in their 50’s, 60’s and even 70’s can demonstrate a more stable income than those in their 20’s or 30’s. One group that it has hit the most are those who want to downsize in their retirement and are being refused outright for mortgage on a new property.

Andrew Montlake, a mortgage broker at Coreco Group, also said that many mortgage holders are being refused new deals when they hit 50 as the banks and lenders are becoming increasingly nervous about the market. An alternative suggested was put forward by Ray Boulger of John Charcol who put the blame on the new pension changes. These come into effect from April 2015 and allow those with an occupational pension to access it before they retire meaning that it is much more difficult for lenders to anticipate how much income an individual or couple will have in their later years. In fact the rising retirement age is another factor that isn’t being taken into account by mortgage lenders said Dominik Lipnicki of brokerage Your Mortgage Decisions. Many people now work well into their 70’s and even 80’s in some cases and this trend is not being reflected in how lenders approach the older market.

At the end of 2013 there were around 3m interest-only mortgages outstanding and the majority of these were made up of homeowners over 50. Indeed the average age of a first time mortgage has risen to 30 (from 25 in the 1970’s) and this is expected to rise to 40 in the next 10 years.

If you are thinking of selling your property privately then being able to afford somewhere else outright can be crucial. Online estate agent I Am The Agent can put you in touch with experienced mortgage advisors for the UK market especially if you are worried about how much of an impact the reluctance of banks and lenders to provide mortgages for over-50’s might have on you and your home.