Over 65? Your secured loan rates are the best on the market

Last post: Jul 31, 2018

Fresh data has revealed that older people (above 65) now enjoy the most affordable secured loan rates on the market. The advertised annual rates available to senior citizens are less the half those available to 21-30 year olds.

There are many perks to getting older. Retirement, doing what you please, not having to answer to anyone, even free bus passes! We all enjoy later life in different ways, but another big perk is that life after 65 is often much cheaper. Whether it's subsidised prescriptions or discounted entry to exhibitions, it's much more affordable to be an older person.

The same is true when it comes to financial products. A recent study has revealed that the average 21-30 year old is now offered an 18.39% advertised annual rate on secured loan products. The same products are currently available to over 65s at a rate of just 7.89%. That's less than half of the rate shouldered by younger borrowers who are commonly perceived to be riskier propositions by lenders.

A key reason for this discrepancy is loan-to-value (LTV) levels. Most older people own a greater share of their home compared to younger homeowners. The longer you have owned a property, the more of your mortgage you are likely to have paid off, which means you'll have a lower loan to value rate. The average LTV rate for people over 65 is 41.85%. The average LTV rate for people aged 21-30, meanwhile, is 77.12%.

This is a great advantage for older people who may require access to secured finance in later life. While there are many benefits to be enjoyed as we get older, there are also lots of costs to consider and finances to reshuffle once we stop receiving a pay check. From poor health to house repairs, there can be lots of costs to cover once we grow older. This can become tricky when we are no longer earning an income. In fact, the over 65 age group in the UK is the lowest income group.

This makes more affordable access to secured finance a real asset when difficult financial times come into play.

At Choice Personal Loans we match borrowers with secured loans from trusted lenders. To find the best fit for you, contact our finance experts today.