A new mortgage, allowing people to repay a loan up to the age of 80, is expected to increase competition in the market.
Austrian lender MoCo will offer mortgages of between 10 and 35 years, and has extended the cut-off age for a loan to be repaid by around ten years.
The company says it will assess an applicant’s ability to repay a mortgage if the loan extends beyond retirement age.
Brendan Burgess from AskAboutMoney.com says the Irish mortgage sector needs to be overhauled:
"I don't know when Irish mortgages were designed, probably back in the 1930s or 1940s. We really need to rethink things. A lot of people are separating in their 40s and their 50s. When they go to get another mortgage to buy a house, the departing partner or spouse often find they can only borrow money up to the age of 65 or maybe 70. That cuts them out from getting a loan".
