A mortgage broker has hit out at lenders who are turning down creditworthy borrowers simply because their mortgage term would stretch out into retirement.

Simon Tyler, of Tyler Mortgage Management, says that people as young as their late forties are being rejected in what he describes as the “greatest underwriting fiasco since the sub-prime crisis”.

Tyler said that mainstream lenders are adopting a “refuse first, ask questions later” attitude towards applicants with impeccable credit records.

He went on: “We are finding that most of the clients that come to us for specialist advice after having been refused by mainstream lenders can actually get a mortgage.

“All they really need is access to a senior underwriter who has the authority and common sense to make sensible lending decisions.

“The fact is that many people over 50 years old are being turned down flat when they are perfectly creditworthy and able to pay off their loans comfortably.

“Unfortunately, the front-line staff whom borrowers have to deal with do not have the authority to make the lending decisions, so most applicants are turned down flat.”

He said that while many banks say they will lend to borrowers up to age 70, 75 or more, the common experience is that when asked for a loan that stretches into retirement, the stock response is a refusal.

Tyler said: “Most lenders simply do not want to deal with borrowers who will be paying off mortgages into retirement because it is too complicated.

“But armed with the correct information, many older borrowers can actually get the loan they need, even if they are in their 60s when applying.”