Banks: Bridging Finance

Baroness Gardner of Parkes Excerpts

Monday 20th October 2014 Lords Chamber

Asked by

[Baroness Gardner of Parkes]

To ask Her Majesty’s Government whether they have any plans to encourage banks to provide bridging finance to asset-rich, cash-poor homeowners who wish to downsize, regardless of age.

[Lord Newby (LD)]

My Lords, the Government are keen to encourage all those wishing to downsize, of whatever age, to do so. In the vast majority of cases, bridging finance should not be necessary. For older people, the major constraint to downsizing is often the lack of appropriate alternative accommodation. We are committed to increasing the flow of such housing on to the market, for example through the care and support specialised housing fund.

[Baroness Gardner of Parkes (Con)]

My Lords, I thank the Minister for that reply, but I do not agree with it. Older people are having major problems because where, years ago, bridging finance would have been available to anyone—particularly if they had big equity in a house and were moving to a less expensive house—there is now a strict age limit. It was 75 when I quoted it last time to someone in the Treasury; I checked it again, and it has gone to 70 now. In some cases, some of the banks I rang said it is 65. Does the Minister not think that there is a bit of age discrimination in this?