14 Sep Am I Too Old For a Mortgage?
Am I Too Old for a Mortgage?
According to research by the Centre for Ageing better, almost half of people in their 50s and 60s believe their financial circumstances will worsen over the next year, due to the Covid-19 pandemic.
These figures are deeply worrying and if you’re asking yourself, “Am I too old to get a mortgage?” then the likelihood is that you’re looking ahead well into retirement at around the age of 65.
Luckily, there are more options than ever before. Many mortgage lenders in the UK have recognised this need and have started offering mortgages not just for over-55’s, but also for people well into retirement. In fact, these days there is no maximum age for applying for a mortgage.
While it is possible to take out a mortgage at 50-plus, many lenders will insist that you repay the home loan by 70 to 75. However, maximum repayment age varies by lender, with some offering mortgages which can be repaid up to the age of 80, and other more specialist lenders going as high as 95.
It’s important to note that many lenders will consider the “oldest applicant” when it comes to this maximum age threshold, something to bear in mind if you are applying for a mortgage alongside someone who is your junior.
If a lender stipulates that a mortgage must be paid back by a certain age, this will restrict the borrowing term – and can push up costs significantly. Say, for example, you applied for a home loan aged 55, and were told it had to be repaid by the time you were 70, you would only have a term of 15 years at most, rather than the standard 25.
So, how do you prepare? It is very important to seek professional mortgage advice to suit your personal circumstances and financial wellbeing. Our mortgage experts then will trawl through the small print of a wide range of mortgage providers for you to recommend the best product to suit your requirements.
If you would like to find out more, we offer an initial appointment at no cost or obligation to explore the options and can be done in our offices in St. Marychurch in Torquay or we are happy to come to your home, or arrange a remote call via video such as Zoom or Skype.
Speaking to a professional mortgage adviser that works with many lenders is imperative. For advice on the right mortgage to suit your personal circumstances, please contact the team at Howard Mortgages on 01803 554455 or contact us here.
If you’d like to read more about financial support during Covid-19 please visit our blog here >
Your home may be repossessed if you do not keep up repayments on your mortgage.