More than two thirds of mortgage brokers say older borrowers wrongly assume lenders impose age restrictions, as enquiries from over-55s continue to rise.

Around 60% of brokers have seen an increase in enquiries from later life borrowers over the past 12 months, according to new research from Suffolk Building Society.

Just 3% of intermediaries surveyed said they had seen a decline in enquiries from borrowers aged over 55, suggesting demand for later life lending is continuing to grow.

The research, which surveyed brokers about niche areas of mortgage lending, found that 64% believe older borrowers still assume all lenders have age restrictions.

More than half (57%) said they had encountered borrowers who believed equity release was their only option, while 55% had worked with older clients concerned that they would not be able to secure a mortgage over a sufficiently long term.

A further 54% of brokers said older borrowers were unaware that pensions and investments can be used in different ways when evidencing affordability.

Brokers reported a wide range of reasons why clients are seeking to borrow later in life, with financial pressures and changing family circumstances among the most common.

The most frequently cited reason was borrowers reaching the end of their existing mortgage term without being ready to repay the outstanding balance, reported by 66% of brokers.

Remortgaging was cited by 47%, while the same proportion said clients were raising funds to help family members, such as providing a gifted deposit.

Other common reasons included raising money for home improvements or debt consolidation, cited by 43% of brokers, while 31% had dealt with clients whose mortgage needs had changed following a significant life event such as divorce.

Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said borrower perceptions had not necessarily kept pace with changes 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“If many over-55s still assume their age will count against them, then now is the time for brokers to challenge those outdated views and help clients understand the options widely available,” she said.

Grimshaw said brokers could help older clients understand how lenders assess retirement income and other assets, rather than allowing borrowers to rule themselves out before exploring their options.

“Being over 55 is not, in itself, a barrier to borrowing,” she added.

Suffolk Building Society said that half of its applications now come from people aged over 55.

The building society said the variety of reasons behind later life borrowing means brokers have an opportunity to have more detailed conversations with older clients about their individual circumstances and potential mortgage options.

Grimshaw said: “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.”