Why is anyone complaining that a few Americans have broadened their horizons and taken up reading international newspapers? Don't we deride them most of the time as an isolated, unintelligent, disinterested bunch? Bravo to all who seek knowledge. It is the fools swallowing the corporate propaganda who should be on the sharp end of your critiques. Then again, they'd never know.

As for the mortage, the lending situation in Britain has become obscene and distorte anyway. Why not give my dog a mortgage?

Mike, Plymouth,

maybe, just maybe, we ALL need to get a grip and a reality check while we're at it. this world is generally obsessed with money alone and that is being portrayed greatly in this new 'scheme'.

Wolf, darlington, england,

@Andy;
freedom of speech my arse. Europe isn't any less than North-America regarding 'fos'.

Most American politics news i read is highly opinionated, or at least includes some form of patriotic babble. Lots of sweet numbers, catchphrases and other overhead, less down to earth facts and figures. Simply put the USA's press bemothers people like a nanny should when they don't understand bigger-than-life concepts.

Barry, Netherlands, Europe

Why not? Perhaps the old gentleman is contemplating starting a family.

Richard Cooper, Dunstable,

You asked:
Why is it that Americans seem to completely dominate every single 'Have Your Say' section on this website?

Melinda is spot on.

I have given up entirely on all US media. I do not watch television, I do not subscribe to magzines or newspapers, except the Wall Street Journal (which *is temperate, balanced, and comprehensive, although nowhere so as the Times). Instead I use the Internet, subscribe to the Sunday Times and Yachting Monthly

American media are all about advertising, with only a bare modicum of content. That goes for magazines as well as electronic media and newspapers. Total waste of time, energy, and materials.

There may be one more reason: our touted "freedom of speech" - we tend to have a habit of speaking our minds... :-)

Cheers,

Andy Lavarre, Newport, RI USA

taking a mortgage out need not have implications just for the homeowner, factor his heirs in as well. when he passes his obligations pass to his heirs who will either continue the payments or sell and pay off the mortgage. The bank is protected by the equity in the home that you assume would cover the risk of the note.

Mike, huntington beach, ca

The term is immaterial as it is an interest only mortgage, might as well be 100 years. I assume the bank made him take out life assurance, wonder what that cost ?

Dave, Herts,, Uk

I'd be grateful if somebody could pass on the contact details of the bank that issued this mortgage. I'm a 25 year old looking for a 102 year mortgage

Peter, London, UK

The man will die, the banks will enforce on the mortgage and take the house. Simple as that. Very cynical.

Mark, London, England

> Why is it that Americans seem to completely dominate every single 'Have Your Say' section on this website?

USA pop 300 million
UK pop 60 million

name, town,

In response to Jamie:

"Why is it that Americans seem to completely dominate every single 'Have Your Say' section on this website? Its not that i'm bothered i just wonder do you not have any decent online news sources over there?

In short .... no. Have you looked at a North American newspaper, or watched CNN? I cannot tell you how much I appreciate the BBC!

Margot, Toronto, Canada

You Asked:
Why is it that Americans seem to completely dominate every single 'Have Your Say' section on this website?

Its not that i'm bothered i just wonder do you not have any decent online news sources over there?
-----------
No, we don't. To get clear, unbiased news about our own country and the rest of the world we must seek out overseas and alternative news sources. Our mainstream media is owned and influenced by large corporations and simply parrots propaganda. The majority of the American public depends on these "news" corporations for their view of the world, remaining woefully ignorant and arrogant about our role in world affairs. I find it very encouraging that more Americans are seeking out real information, perhaps people here are beginning to wake from their ignorant stupor.

Melinda, Schenectady, New York , USA

This will be what all the banks and financial institutions will rave about, the permanent renter, once they default the property becomes who's (da bank) then they can sell or rent it out to some other hapless person hoping to own his own property . The end product will always be, with the banks and corporations owning all property. And since upon reflection all rights stem from property, what will individual citizens own? besides a smaller and smaller personal zone devoid of privacy.

Bill, Chicago, IL

The only reason a bank would give a 102 year old man a 25 year mortgage is to make money.Banks are not in the habit of losing money.You can bet that all the banks bases were covered.Seniors have money for large downpayments,they have guaranteed incomes and they have pristine credit scores,if not they wouldn't be getting these loans.Also many seniors are easy targets for unscrupulous real estate dealers.All of this enters into these loans.

ron, toronto,

I think it's fantastic that lenders are lifting the barriers and allowing more flexible borrowing. Whilst many have suggested this arrangement is ludicrous, it is worth considering that he most likely took a great deal of advice from a financial adviser beforehand. My father is an independent financial adviser, and inheritance tax planning forms an crucial part of his advice to clients. If this was the most suitable manner for the gentleman to make the most of his estate then every credit to him!

Chris Crichton-Rankin, Lytham, UK

Why is it that Americans seem to completely dominate every single 'Have Your Say' section on this website?

Its not that i'm bothered i just wonder do you not have any decent online news sources over there?

Jamie, London, England

It is precisely this obsession that every 22 year old should own their own property that causes a lot of the problem. Ideally, people should buy a home on a 25 year mortgage 25 years before they retire, and if they buy a flat with a 15 year mortgage 15 years before they retire then they have an income (more or less index linkd) as well as a home to live in. Alternatively they could put their money in a pension and find it's been managed away or stolen by Gordon Brown. Housing is (rightly) seen as a form of investment, but the notion that everyone deserves a cheap house is as wrong as saying everyone should be able to buy equities at a 50% discount
An increased supply of rental property makes accomodation (not home ownership) more affordable which is surely the point.

Mark T, London,

Gee whatever pills he is on I want some. !!! I cannot be arsed to get anal about his owning so many homes when i am awed by his hopeful attitude to hid longevity.

D MCMgregor, Tunbridge Wells, UK

My own mortgage is due to be paid off when I'm 75, but I'll refinance long before then and extend the period, probably. My net worth is high but it's mostly in assets not capital, so mortgaging property is the cheapest way of raising cash. Technically age discrimination in the UK is now illegal (since October 2006) but I doubt many companies are complying - yet. Certainly recruitment agencies aren't! So what if the borrower is over 100? This guy executed a business transaction, pure and simple. If the lender had decided the risk was too great and they'd lose their money they wouldn't have granted the loan. Either that or they're headline chasing!

Brian, Farnham, UK

welcome to the real world...If you look hard enough, you can find anything!

Filippo, Paris, FRANCE

Surely this is to reduce his inheritance tax liability.

al, Newcastle,

A profoundly silly article. I suggest another headline 'Centenarian Multi-millionaire Extends Property Empire'.

eric, harrogate, uk

Re: David of London's comment.
If i prefer to invest my earnings in 1 or more properties to provide me with a more secure future, rather than than smoke and drink myself to oblivion , you think I should be penalised by higher taxes.
With this sort of attitude no wonder the uk is the cesspit of europe

Nick, Christchurch, Dorset

Capital gains tax is only applicable when the house is sold and the profit is realised. Long after these people are dead. I do think that with the current state of pensions purchassing a second or third property before retierment can be considered as good planning. However if you can afford to buy after the age of 75 you are just being greedy. I agree with David from London, there is already a serious lack of affordable housing for young people trying to get on the ladder. If this trend grows it will become even worse.

Grant, London,

This article is not actually news, it was mentioned on fool.co.uk on the 27th March with a few more details:
"This deal actually happened last November - - the newspapers have only just picked up on it;Our 102-year old chap was a very experienced investor with a portfolio of rental properties that he was using for equity release purposes;The re-mortgage of his properties was designed mostly to mitigate the Inheritance Tax bill that his estate (and his children) would be lumbered with in the event of his death;He has, since, died."

Michael Reynolds, Bournemouth, UK

Why don't readers READ the article before commenting? This loan was NOT a home loan. It was for a buy to let "investment". No doubt the guy lives quite comfortably in his own home. The downside would be if he bought a property he was not able to let and could not self fund the mortgage interest repayments. Furthermore, there is highly unlikely to be any risk to the lender - mortgages by their nature are secured and therefore if and when the guy dies, the property will be sold (or mortgage paid off if the loan was secured by life insurance). Buy to let mortgages are not high loan to value loans thereby leaving the lenders with a reasonable margin to allow for drops in property prices. So lets not worry too much about some hypothetical 100 year old spouse getting evicted, nor about age discrimination - they are not the issue here. This was just another commercial arrangement.

Vera Armer, Kettering, England

David from London says if you want to own more than one house, you shoul dpay more tax. He obviously is unaware that if you do own more than one house - then you do pay more tax, capital gains tax to be precise.

Paul, Manchester,

It is precisely this behaviour (owning ten houses) that accounts for the lack of affordable housing for young people. By all means buy a 2nd home (or eleventh), but you should be charged more tax. This should apply regardless of whether you are 22 or 102. Age is not the issue.

David, London,

Should a person have to sit in a rocking chair and wait to die just because they've reached a particular age? The Yanks seem to be missing the point that he is apparently paying a fair market interest rate - not a totally unrealistic, introductory, predatory, sub-prime rate. Good for him! If he is able carry out the maintenance on a revenue property, he deserves to live to burn the mortgage!
And I was wondering whether I should take on a mortgage when I turn 60 this year. Thanks to this man I have my answer. He should be an inspiration to all of us, not an object of ridicule or condemnation!

ed best, Calgary, Alberta, Canada

In Texas it's the law that people can't be turned down for reasom of their age. It's considered discrimination. Age can't be a factor in assessing someone for a mortgage

Jack Lee, Austin, TX USA

I'm not sure where some of the US writers have gotten their statistics. Home foreclosures are at an all-time high in the US!

All due to unregulated lending to high-risk low-income and fixed-income borrowers.

Nobody bothered about these human beings who are now in serious crisis--both financially and health-wise, but now Congress is falling all over themselves to help the ECONOMY which is now in trouble due to this massive shady lending pracitces and ARM's aimmed at vunerable Americans. No one much cares about the human costs--it's all, sadly, about money--I hope that's not the case in the UK.

Nancy, Glens Falls, NY USA

One takes out a 25 year amortization loan SPECIFICALLy for the cash flow -- the elderly gentleman is absolutely correct, I would suggest, in fact, suggest that he use a 100 year amortization,

luc, harringotn park, nj

What Bill from Charlotte seems to ignore is that we DO have the facts at hand. The guy is 102 years old, and likely to die long before the mortgage is due to be repaid; what's more, there is no guarantee the house will be worth £200,000, or even £100,000, by the time this happens.

If this is the practice of mortgage companies nowadays, then it can only be a matter of time before a fair number of them start collapsing due to bad debt.

Paul Heyes, Sheffield, United Kingdom

Lynn, my brother in law just got a 30 yr loan.....he's 54. And although he has a good job, he smokes and doesn't have a "nest egg" to fall back on. The banks will give a loan to anyone w/just a bit of credit. I also know a couple who's about 70 yrs old who took out a 30 yr home loan about 6 yrs ago. Crazy, yes, but it happens everyday. I wouldn't want one at that age!

Annie, Greensboro, NC

insurance and banking is different. there are MANY discriminations, all justified by "statistics" and therefore not covered under the various protections we enjoy here. for instances, your age and race will play a huge roll in the insurance you can get. your credit score will determine your ability to get loans, and on and on and on...

jason, kansas city,

In the U.S. in 2005 the mortgage delinquency rate was 4.4 percent an all time low. In 2006 it rose to 4.7, still an almost all time low, that means 95.3 percent of all homeowners make their payments on time. A few companies decided to make to many high risk loans and a few people bought more house than they could afford, Happens every time the economy is particularly strong. A man who's lived to 102 is smart enough to have his affairs in order if he were to die. Here's an idea, in the U.S. the average life expectancy is 77 for men. No man over 47 gets a 30 year loan, over 52 gets a 25 year loan, over 57 a 20 year loan and over 60 no more loans at all (car loans,credit cards, home loans), because you could die any day now.

Lynn, elk river, usa

That's what I call optimism.

Margaret, New Orleans, LA

If you restrict the man from borrowing based strictly on his age, then you are discriminating based on age and that is a protected status in the USA. I don't know about the UK but must assume it is the same.

Borrowing and debt management is not the simplistic matter of just taking out a loan and making payments in an amortized timetable. This gentleman may be a real estate investor, or simply trying to borrow to improve his cash flow and not have to leave his home to do that. For those critical of this story, you can't judge this situation based on the facts at hand. On the basis of what I am reading, I see no problem here. If suitability and or coercion were involved, that is another issue.

Bill, Charlotte, NC USA

Do you hear yourselves...age discrimination ?!? what the....discrimination is an easy word to throw around as the word terrorist is. What exactly is age discrimination ? other then something that seems totally reasonable that youve put a negative connotation on ? Or is it just a pity party for people who can't afford their healthcare at older ages due to problems with our government. The bank should not be taking that load....regardless of what they are making, its not their job to make life easier for the decrepit.

Jim, Memphis, TN

Another banker weighing in here - agreeing with Wayne, Paul & Jerry. No one who makes (lends) mortgages ever expects that the loan actually runs to term. People move or refinance all the time. I have no idea where John Boom from Florida picked up his gross misunderstanding of mortgages.

But I do have one concern about this transaction. If the house is sold to satisfy the 102 year old's mortgage, I hope his widow is provided for.

Ben Hoff, NJ, USA

To Starling - Actually, I don't think it says anything about bank profits, or that they are throwing money away, as you seem to imply. The lender maintains a security interest in the property mortgaged even after the borrower has died, and will be able to regain the principal from the estate, either through a cash payment of by liquidating the property. In the meantime, they collect the interest payments...

Martin, Seattle, WA

Let's just say that lending money to a person who is likely to die shortly is kind of , well, stupid.

Enoch, Eden, Middle East

Here in the US our senior homeowners age 62 plus, have access to the equity in their home via Reverse Mortgages , a government backed program. The access to the money has contributed to a lifetsyle enrichment for thousands of US senior citizens .

Greg King, Tampa, Florida

Wayne is right. The age of the borrower is not relevant. If the borrower dies, the lender gets repayment when the estate is settled...it doesn't result in a loss to the bank.

Joe, Tampa, USA

Jerry, Reverse Mortgages are not generally good for seniors. For a few maybe but for the general population of seniors it is a trap. What happens when that senior needs skilled nursing care or needs Assisted living care? The biggest asset they have is tied up in a reverse mortgage and they won't have the money they need for the care they will need. Just like subprime lending this preys on the seniors who are cash strapped as it is.

John, housing prices would not go up they would fall just like they have fallen with the subprime defaults as of late here in the US. Loans that never should have been made, but loan officers were greedy to get the commissions, especially the backend ones from the banks. The lawsuits are coming so be prepared.

Jeff, Sacramento, California, USA

i don't think our American cousins understand the UK house market and particularly that this is an interest only mortgage on a property which is for rental and not his main home. That said, he must have put down a sizable deposit in which case why not invest that and withdraw it and spend a little each year. Guess he just can't retire. the UK housing market would have to massively crash for the bank to catch a cold on this one. if i make 100 i woudl hope i'm happily retired not worrying about making even more money that i wont live to spend.

Neil, south coast, UK

The bank probably checked to see if he had enough assets to cover the loan when he dies, and also assumes that his heirs will not default on the loan.

brad, Springfield, USA

Wow....I can't believe that they discriminate based on age in England. That would never fly in the States. i would rather see my grandparents refinance and have a "better quality of life" versus the plan they have now of being broke and living in a San Diego house that is free and clear.

What good is their nest egg if they dont use it (tax free at that!)?

Jason, Glendora, Ca

Old people need homes and income too. Who stays in a mortgage for 25 years now anyway? Americans refinance every 3 years on average.

Kelin, White Lake, Detroit, MI

In the US you cannot discrimate against a borrower due to age---the only limit is that the borrower must be of legal age (18) to execute the documents.

Dawn, Virginia (Mtg. Underwriter), USA

Heather wrote: "ok. could an average 85 year old (with savings income and a pension which would adequately cover a mortgage payment) mortgage his house (for say £200k). Pay the cheque into his Bank. Draw out the money in cash and spend it/give it away over a period of time. This would then, presumably, lower inheritance tax liability and possibly allow him some state benefits - in view of high mortgage and low savings"

Sure! What a perfect example of how Socialism turns people into paupers. Go from outright ownership to tenant status to gain tax benefits and welfare payments!! Big loser: the kids! Instead of leaving them an assett you leave them a big loan and lots of work.

I guess if you want to be a conventional capitalist and accrue assetts you need to move to a tax-haven these days.

ric woz, Vancouver, WA, USA

Jerry, this article doesn't address reverse mortgages. That is why Richard Stone suggests that taking out a mortgage at that age can be "quite stressful." Besides, in the long term reverse mortgages only serve to take lasting wealth out of the hands of private citizens (and their posterity) and put it into the hands of the wealthy and those who manage the portfolios of the wealthy. Reverse mortgages aren't safe for the elderly, they are are a selfish, foolish waste of capital built up over a lifetime. Of course, for lenders that make such loans, they are a "safe bet."
As far as traditional loans to the very aged, sub-prime loans, and other risky loans extended in the name of "wealth building," we as a society would be better off breaking this obsession with wealth for the sake of stability and sanity. Quit encouraging investors to chase the easy money while abandoning reason and ethics.

David, Chicago, IL

What is the big deal ... there is home equity. The guy dies the banks get their money back plus what ever interest is paid before he dies.

Cindy, San Jose, USA, CA

Not a bad idea, take out life insurance, buy a nice place to live, leave it to your children in the will, then when you pass on the insurance pays it off and the children get the place.

Markus Rimpleton, Miami, USA

There is a big difference between defaulting and dying. When you die your house will be inherited by someone, who will have responsibility for continuing to pay the loan if they want to keep the house. I imagine that the percent of loans to elders going to default is smaller than the average, even given they are dying a lot more frequently.

ric woz, Vancouver, WA, USA

Why not? I am 72 with a mortgage and 2 sons now reaching the expensive ages. I could service an interest only only mortgage from my pensions but have to carry on working to service my repayment mortgage. I could remortgage with a 33% mortgage and have an easier life. So why not? Plenty of value there to cover any risk and when I pop my clogs plenty to cover my wife down sizing to a smaller property.

john, Waterlooville, UK

My Mother, 98, got a 30 year mortgage from a Texas bank. When I asked her about it, she remarked that, 1; she put 20% down on the property. 2; she had over 200k in the bank she got the mortgage from. 3; her pension checks easily covered the payment., 4; her credit score from a credit recording bureau was 820 out of a possible 850., and 5; if they did not give her the mortgage she would have sued for age discrimination because there was no way she would be refused with the same conditions if she were 50. My thoughts; go girl, go!

Florida Doctor, Naples, FL

Refusal of mortgage could be considered a form of age discrimination. The lender should be secure and should not lose on the transaction.

Mike, Galion, Ohio - USA

England obviously doesn't have ECOA regulations like the USA...ECOA prohibits discriminating against age.

Ryan, Las Vegas, NV

Wow, I can't even take out a $200K mortgage in the states, and they give a 102 year old man a nearly $400K interest only. I need to move across the pond

Ron, Chicago, IL, USA

This is a sham...why wouldn't morgage companies give this man a loan? No doubt he's had to insure himself to the gills to get the loan...so they'll get paid either way..whether he lives and is able to make the payments or the stress of it all finishes him off.

Concerned, Washington, DC

Well, when the mortgage amortization makes you pay the interest up front, if the pensioner kicks off, they foreclose if the family can't pay for it, and the bank makes a mint. No brainer...

Sam, Birmingham, USA / Alabama

have you not seen the mortgage companies that are going bankrupt in the USA due to stupid moves like this. What the heck does he need with the money and if you think he is going to pay or his estate, that is crazy. Maybe he will but I think it is a way to get around the system.

Josie, Verona, USA

Take a 25-year mortgage when you're 102 ... Now, that's optimism!

LIam, Baille nam Muc,

I think it is completely irresponsible to give a morgage to a 102 year old. What happens when he and other elderly borrowers dies? Interest rates will go up, in turn housing prices will go up and and will affect us all, it will be harder for anyone to get a loan in the longterm. This is no different than giving a loan to someone who has a history in defaulting; they don’t do that for a reason.

John Boom, Fort Lauderdale, Florida, USA

Have you folks across the pond heard about the economic effects of subprime lending here in the US?

Harry, New York, NY

I make Reverse Mortgages and they are safe for 102 year olds because they make no monthly payments and can not default unless they move from their home. These FHA loans are probably not available in England. But, they are great for seniors since they only pay taxes and insurance.

Jerry White, Springfield, USA, ILL

God bless the 102 year gentleman. If I were that age and I could get a loan for 25 years all the power to you. At that age you think paying back that loan would be on top of my list.

Joey Amalfitano, Wilmington, Delaware. USA

I agree with Wayne. I've been originating mortgages for 15 years and age does not matter, at least in America. When the man dies, the home will be sold and the bank paid off. Everybody wins.

Paul, Dallas, TX USA

I have been originating mortgages for 33 years and I have never heard of a lender that caps the age of a borrower. We make loans to 80 year olds and up all the time. Not to do so is age discrimination.

Wayne, Lexington, KY

ok. could an average 85 year old (with savings income and a pension which would adequately cover a mortgage payment) mortgage his house (for say £200k). Pay the cheque into his Bank. Draw out the money in cash and spend it/give it away over a period of time. This would then, presumably, lower inheritance tax liability and possibly allow him some state benefits - in view of high mortgage and low savings.

heather, chichester, england

Goes to show the profits banks make are so big they can afford stuff like this ...

Starling, Lancaster,