85% of those surveyed believe that lending criteria should be based on ability to pay and not just on a person’s age, with over half (52%) saying that the Regulator should intervene to ensure fair treatments by mortgage lenders.
In terms of individuals experiencing discrimination, 12% of those aged 50-59 said that they thought that they had been prevented from moving their mortgage to a more competitive deal because of their age.
Paul Green of Saga said that their experience "smacks of lazy lending, not bothering to understand your customers and is an another example of the industry not responding to the needs of an aging population."
He added:
“It appears that mortgage lenders are blind to the fact that the world of work is changing. It simply beggars belief that people are being denied mortgages or forced to pay more for uncompetitive deals simply because of their age."
Saga said that many older people are now complaining about their bank or mortgage provider introducing arbitrary upper age limits on lending criteria and also placing a bar on older borrowers getting better deals. This is against a backdrop of working life being extended through the raising of the state retirement age, the abolishing of firms being able to set compulsory retirement ages and moreover the desire of many people to continue to work full or part-time in later life.
Saga is calling for the Regulator to take a proactive stance with mortgage lenders to ensure that lending criteria are fair and based on ability to pay and not just on age.
Earlier this month, the FOS upheld a complaint against HSBC after it denied a couple in their 40s a mortgage on the grounds of age - the first time an age-related complaint has been upheld.
Nigel Waterson, Chairman of The Equity Release Council, has said that the ruling against "could prove to be a landmark decision".
