mortgage beyond retirement age?

virgin_moneysaver

My brother & his partner are splitting up & it looks like she is gonna buy him out - he should come away with about £31-£32k which he'll need for a deposit but it means that he's gonna have to start from scratch with a mortgage & he'll be 44 this year, can he have a mortgage term that is longer than the time he'll reach retirement age

also what's the criteria for the ratio of amount borrowed to salary these days, it used to be 3 times but I'm sure I heard you can get more now

also, as he has no property to sell is he classed as a FTB

thanx

jennifernil

We had no problem getting a mortgage that ran beyond retirement age with the Halifax, and there are plenty other providers that will also do this. Some will give up to 5 x salary but he should look at what the repayments will be and not over-stretch himself.

Ian_W

virgin_moneysaver wrote: also, as he has no property to sell is he classed as a FTB

By whom? Doesn't make a great deal of difference with the mortgage. It's either a new mortgage, as in this case, or a remortgage. FTB don't really benefit that much except sometimes the higher lending charges are waived if above 90 but below 95% LTV.

It does make his position as a purchaser much stronger as once he gets a mortgage agreed in principle he'll be proceedable and be the end of a chain. He should use that when negotiating on the price of the property.

BTW agree with jenifernil, many lenders will do it, my last BS the Coventry had a condition that a mortgage term had to be completed by age 85!! With them being regulated it may be pointed out to him so they cover their backs against later complaint.