Mortgages for the over 50s

It’s common to see lenders impose an upper age limit for new mortgages for the over 50s, which makes it harder for the over 50s. Find out how to get a new mortgage at 50+

It may not be possible to get a mortgage at any age, because lenders often impose upper age limits on each mortgage. It’s not unusual to see an upper age limit for new mortgages at 65 to 70, or age limits for repaying a mortgage that range between 70 and 85.

Banks and building societies are likely to be reluctant to approve loans that extend beyond retirement age, because that’s when your income is likely to drop. They hold this view, despite the fact there are plenty of borrowers who will continue to earn beyond retirement age and be able to support a mortgage, either through working longer or by using income from savings and investments.

The reality of this is that if you’re 50 and planning to retire at 60, you may struggle to get a mortgage. And if you do secure a mortgage, you may have to repay it before your 70th birthday. This means a term of 20 years instead of the normal 25 – and of course, a shorter term means more expensive monthly repayments, at a time when your income may fall as you enter retirement.

Generally speaking, smaller banks and building societies are more likely to be amenable to older borrowers as they will often lend beyond the age of 75 on a case-by-case basis. For example Market Harborough Building Society, Bath Building Society, and Mansfield Building Society will lend up to the age of 85 – and Leek United doesn’t have a maximum age.

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