Six in 10 mortgage brokers have seen an increase in later-life mortgage enquiries over the past 12 months, while two-thirds believe borrowers aged over 55 still assume lenders impose age restrictions, according to research by Suffolk Building Society.

The survey of 262 mortgage brokers found only 3% had seen a decline in enquiries from older borrowers, which showed the growing demand for borrowing later in life despite widespread misconceptions about the options available.

The most common reason for seeking a mortgage was reaching the end of an existing mortgage term without being ready to repay the balance in full, cited by 66% of brokers.

Remortgaging and raising funds to help family members, such as providing a gifted deposit, were each cited by 47%.

Other reasons included raising money for home improvements or debt consolidation, cited by 43%, while 31% said clients had needed to extend their borrowing following a significant life event such as divorce.

The building society said misconceptions remain widespread, with 64% of brokers reporting that older borrowers believe all lenders impose age restrictions. A further 57% said clients believe equity release is their only option, while 55% had worked with borrowers concerned about securing a sufficiently long mortgage term.

More than half, at 54%, said older borrowers were unaware that pensions and investments can be used to evidence affordability.

Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: "Borrower perceptions have not necessarily kept pace with the innovation we’ve seen in the mortgage market. If many over-55s still assume their age will count against them, then now is the time for brokers to challenge those outdated views and help clients understand the options widely available.

"Borrowing later in life is increasingly becoming the norm - half of our applications now come from people aged over 55 - and the reasons for doing so are as varied as the borrowers themselves. For brokers, that presents multiple possibilities. By helping older clients understand that they may have more options than they realise, and that age alone does not have to stand in the way, brokers can build stronger relationships, tap into a growing area of the market, and feel good about what they’re doing at the same time."

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