MoCo offers mortgages that can be repaid up to age 80

New mortgage lender MoCo, has been revolutionising the nation's home-loan markets by announcing that it would be prepared to issue mortgages that people can pay off until age 80.

Most lenders have credit policies that mean they want the mortgage paid off by the time the homeowner reaches the age of 70. MoCo, which is owned by Austrian bank Bawag, insisted it is acting prudently in offering mortgages to older borrowers. The new mortgage lender is expected to add competition in the home-loans market in Ireland, which is dominated by AIB and Bank of Ireland.

Last month it launched its first home loans in this market, including a five-year fixed rate, starting from 4.5 per cent, which is lower than the main banks.

But its move to issue lending criteria to brokers that permits mortgage terms that will mean some borrowers still paying off the loan up to the age of 80 has raised eyebrows.

Its credit policy states: “Max term of up to 35 years. Max terms to applicant age of 80.”

With cost of living, the lack of housing and the average life expectancy rising, the profile of those applying for mortgages are now far more diverse in all areas, especially age. In June 2023, mortgage lender Avant Money was ordered to pay more than €8,000 in compensation to a man in his 70s who was refused a mortgage switch due to his age.

The Irish Independent reported that following the refusal from a broker due to his age, complainant, Michael Lane, approached the Avant Money directly, and was told by the head of its mortgage operations that its policy “does not extend to offering a mortgage to applicants over 70” and that was its “final response”.

Despite this response, Avant Money did in fact have a lending policy that allowed for exceptions to age provided that repayment capacity could be proven. Brought to the Workplace Relations Commission, the tribunal upheld the complaint of ageist discrimination by Avant Money.

 

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