Over here we have subprime lenders who assume that there were a lot more customers who could jump salary bands in two years than turned out to be. In England, there apparently is such demand for funds that one bank will pretend a lender will live to 127, UPI reports.

BRIGHTON, England, March 25 (UPI) — Actuarial experts must be rolling their eyes since word got out that a British lender has granted a 25-year mortgage to a 102-year-old man.

The unnamed centenarian from East Sussex is believed to be the oldest person in Britain to be granted a mortgage, the Sunday Telegraph in London reported. He is to pay $1,916 a month on the $400,000 mortgage on the rental property.

The only reason I can think of this is perhaps the lendee made a killer deal on this property, needing only $400k to close when the property value is way more. The bank could then foreclose when the 102-year-old assumes room temperature and auction the property for higher than the amount it loaned out.

Otherwise, I don’t see the incentive here. Does the UK bail out its banks like we have in the past?


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