National Counties Building Society has warned that older borrowers are being “discriminated” against by the major high street banks.
The society has recently researched the policies of the ‘big banks’ and claims that it has found evidence of systemic age discrimination.
Having had researchers approach HSBC, Barclays, Lloyd’s, Santander, Nationwide and Virgin Money National Counties found that despite being able to afford the repayments older borrowers are routinely rejected.
Keith Barber, director of business development at National Counties, said: “It is extraordinary to learn that the standard policy of the major high-street lenders discriminates on the grounds of age alone, even in some cases leaving their existing customers high and dry.
“In most cases, retirement income, particularly when it is in the form of gilt-edged occupational pensions schemes, is more secure than the earnings of a salaried employee, who is subject to the uncertainties of the workplace market and may even be faced with redundancy before a mortgage term ends.
“In an age where we are living longer it does not seem right that people are being discriminated against in this way.”
And Barber called on the Council of Mortgage Lenders to encourage lenders to act if they won’t do so themselves.
He said: “Maybe it is about time that lenders embraced the spirit of the Equality Act and cater for older borrowers’ needs.
“If not, a voluntary code of conduct should be created and implemented by members of the Council of Mortgage Lenders.”
Barber’s comments follow a commitment from the Building Societies Association to review its maximum age limits for mortgage borrowers.
At the time the BSA said lenders need to meet the challenge of growing life expectancy, which is rising by five hours every day.
There are currently more than 11.6 million people over age 65 in the UK.
