Age regulations for mortgage borrowing ?

Christy

Does anyone know what if any, restrictions are applicable to taking out a mortgage later in life. I am currently 47 and am a little concerned that with only 18 years to retirement I may be penalised or refused a mortgage. My details are below.....

I earn 32k
Wife earns 10k
Want to buy at 150k
Have a 25k deposit
Mortgage of 125k required

Thanks in advance for any help

payless

as some lenders calculate based on affordability of projected monthly payment , they do offer less to those looking at taking a shorter (hence higher monthly payment) mortgage

although many still use the old multiplers - whatever the term (?)

although on your figures- all being equal (other commitments etc)  can't see too much of a problem - I would expect a number of lenders to be interested - although of course even though they might lend you the money - you still need to be comfortable with the payments

edit I assumed your question meant - will they lend enough as there is a shorter time to reply - following other replies I suppose it could mean -
"can I borrow into retirement" - the answer is usually - although some lenders do ask for projected pension income

louise1234_2

As far as I know, if you plan to pay it off before normal retirement age there should be no problems.

However, if you were hoping for a longer term, lenders might be more fussy.

What term were you looking for??

herbiesjp

Based on the details you have posted - getting a mortgage should not be a problem with most lenders up until normal retirment age.

With some lenders they are happy to go over this NRA limit, as long as there is an income that will be able to maintain the mortgage.

The overiding factor though, is not so much whether or not they will lend you the money, but will it be affordable to you.

Do you have any other financial commitments?

Christy

In answer to the above queries - My only commitments are a wife and 2 kids !! I am in the dilemma to either go for a 20 year mortgage or just for the 18 to take me to retirement age. I have a broker on the case anyay and he seems to think that most lenders are ok going beyond the retirement age... But (In answer to payless) as this is going to cost about £800 a month (At todays rate) I would not feel comfortable paying that off as a pensioner. I do realise £800 in 18 years time will be the equivelent of 'not a lot' but it is still a concern. I will have to look at the difference in monthly payments and make a judgement on that.

Many thanks for the comments.

grandma

Some lenders are very flexible.

Yorkshire Building Society are willing to lend to customers AFTER normal retirement age.

We got a 25 yr mortgage when I was 58 and my husband was 69.

BTW we are looking to move the mortgage in a couple of years when the discount runs out. Is anybody aware of another pensioner friendly lender?

payless

If you are with YBS - Think your existing lender have a range of " new deals for existing customers" so may not need to move anyway