By the time we reach Third Age we have hopefully cleared, or are about to clear, our mortgage commitment.

Unfortunately, thanks to changes in financial circumstances many Third Agers are finding themselves with an ongoing mortgage commitment, possibly without hope of clearing it in their lifetime.

The last 18 months of world-wide recession has tipped the mortgage market on its head, both in terms of new mortgages and the way existing ones are administered. The so called sub-prime mortgage market has suffered most. As a consequence it is now more difficult for people in any age group to acquire a mortgage.

Gone are the ridiculously high loan to value ratios which caused much of the collapse. You will now need a substantial deposit and a squeaky clean credit record before you are considered for property finance and as a result we have witnessed falls in house prices which we never expected because of the general slowdown in the market.

If you are mortgage hunting in Third Age the chances are it is to fund a buy to let as an investment for your future or that of your family. That market too has taken a hammering and many companies which were riding the crest of the property boom two years ago have either gone out of business or are only administering previous loans. It is unlikely to change. The British mortgage market has probably changed forever and Third Agers could have been the last generation to get the best out of it.

Massive multiples of income, often up to 125%, were given to first time buyers until two years ago. The recession has now plunged many of them into serious mortgage arrears, and lenders are having to be far more lenient with the increasing number of problems.

Look for new solutions. If a member of your family has problems it may be beneficial to consider going to their aid for there are signs that the property market is recovering slightly in terms of property prices.

You may be suffering by your investments attracting rock bottom interest rates, so there will be cases where parents might consider helping out on a mortgage payment knowing that long term there will be a significant chance of a better return on their money than by traditional savings methods.

Let me say here and now that I have to advise you too see a qualified financial advisor to discuss this kind of plan, but having said that your own common sense will tell you if it is worth even considering.

The reverse scenario could work too. If you are struggling with mortgage payments it may be worth considering sharing them with your children for they are the ones who will benefit from the investment at the end of the day. Not something you will find financial services companies recommending, but it could be a sensible alternative to moving or complicated schemes involving sell and rent back arrangements. On the other hand it may be worth switching to an interest only mortgage in the hope that the capital appreciation is still a healthy legacy for your family.

Traditionally, over many years, the property market has always recovered and there have been more peaks than troughs. Take a look at those who invested heavily in property to let in the 70’s and 80’s. They have had handsome rental incomes which will have far exceeded the investment and the capital value is still many times higher than when they began.

The UK mortgage market may never be the same again so it’s time for property wise Third Agers to take a fresh look at their overall financial position. There may be hidden benefits to build on for the future.

Graham Smith for Third Age.