Mortgage Age Limits

NOWSE

We want to use the equity in our house to finance the purchase of a property abroad. A few weeks ago I rang HSBC, with who we have a small mortgage that is fully repaid next year, to see what they could offer. When asked, I said that we planned to retire at the age of 68 in 11 years time and received a quote/mortgage certificate accordingly. I have now contacted HSBC again to progress the mortgage to be told that the info I'd been given was wrong and that their mortgages must be repaid by the time a borrower is 65. It would seem that a mortgage can only carry on past this time if the only income taken into account, in calculating an amount we can borrow, is our pensions.
As we are in an age when people have the right to remain working after 65 this situation seems bizarre. Does anyone know if other mortgage lenders have similar policies?

kingstreet

As with most mortgage lending post-apocalypse, the FSA is now leaning on lenders to fully investigate affordability and particularly for mortgages which will go past state pension age.

You will be required to provide evidence of income in retirement, or perhaps provide confirmation that you will be able to physically continue to do your job beyond retirement.

Halifax has a product called Retirement Home Plan which may have been suitable for what you describe, if you were older. It is only available via intermediaries and specifically those who have lifetime mortgage "permissions" like IFAs.

I'd suggest you speak to independent brokers for advice on this issue, rather than approaching lenders directly.

herbiesjp

Plenty lenders will go to age 70 on standard terms.

NOWSE

herbiesjp wrote: »

Plenty lenders will go to age 70 on standard terms.

Thank you for replying.

I have had a look through about half a dozen lenders' websites but haven't been able to find this information amongst the various criteria/conditions. Please could you suggest some lenders. Thanks.

kingstreet

I've just had a quick dig around and these are the ones I could find reasonably easily;-

Nationwide

As a responsible lender, Nationwide will require details of how applicants intend to continue to meet repayments should the chosen mortgage term take them into retirement.

Abbey

We will not accept any case where your client's stated age of intended retirement is over 75 years. We require evidence of both current and retirement income where your client wishes to take a mortgage beyond their stated retirement age.

In addition, we will not consider cases in this category where our automated check shows that affordability is not proven based on current income.

Coventry

Where the mortgage term exceeds the applicant’s 65th birthday, evidence of retirement income is required

Halifax

Recently asked me for employer's letter or evidence of income in retirement for a 40 year old taking a 25 year mortgage a few months into retirement.

Nottingham

Where the proposed mortgage term is likely to exceed the applicants retirement age(s), the ability to continue to pay the mortgage on a potentially reduced income should be documented.

Northern Rock

We will request confirmation of pension arrangements for any applicant(s) requiring a mortgage term which extends beyond the applicant(s) normal retirement age (65), irrespective of their current age.

Hopefully, herbiesjp can oblige.

herbiesjp

Off the top of my head The Mortgage Works do.

However without knowing the actual details, it is impossible to say which ones will definitely be able to help i.e. whose lending criteria you meet.

Conrad

Some even go to age 90 and not all require evidence of income after 65 especially when there is considerable equity. Which lender is hard to say as it depends on many factors pertaining to your needs and situation.

All the best

NOWSE

kingstreet wrote: »

I've just had a quick dig around and these are the ones I could find reasonably easily;-

Nationwide

As a responsible lender, Nationwide will require details of how applicants intend to continue to meet repayments should the chosen mortgage term take them into retirement.

Abbey

We will not accept any case where your client's stated age of intended retirement is over 75 years. We require evidence of both current and retirement income where your client wishes to take a mortgage beyond their stated retirement age.

In addition, we will not consider cases in this category where our automated check shows that affordability is not proven based on current income.

Coventry

Where the mortgage term exceeds the applicant’s 65th birthday, evidence of retirement income is required

Halifax

Recently asked me for employer's letter or evidence of income in retirement for a 40 year old taking a 25 year mortgage a few months into retirement.

Nottingham

Where the proposed mortgage term is likely to exceed the applicants retirement age(s), the ability to continue to pay the mortgage on a potentially reduced income should be documented.

Northern Rock

We will request confirmation of pension arrangements for any applicant(s) requiring a mortgage term which extends beyond the applicant(s) normal retirement age (65), irrespective of their current age.

Hopefully, herbiesjp can oblige.

Thank you very much kingstreet. I will look into these.

tiernsee

I'm doing something similar to you, OP - but sticking to the UK rather than overseas. Haven't got a mortgage at moment, became mortgage free last year. Am going with Natwest and although I have arranged mortgage to finish at age 64 was told I could go on to 70 if I wanted with standard terms. Am impressed with quality and speed of service, so far.......