Mortgages for older people..? Advice please

C_Mababejive

Hi..just asking on behalf of someone else...

When i say "older" i mean mid to late 40s and first time buyer typically.

Some questions...

Could someone who is..say ..50 get a 25 year mortgage by showing that for example,they had a final salary pension or other pension vehicle? Would the payments be tapered to factor in the lower income at pensionable age?

Could someone who is 50 get an interest only mortgage for life so that the mortgage company simply gets the house when the occupant dies ,sells,pays mortgage and any profits go to the deceased estate? In such a situation,could that person move house or would they be tied to the house they bought under that arrangement?

Any thoughts/suggestions welcome..

kingstreet

Nowadays, most lenders will ask that the mortgage term ends before the applicant reaches retirement age. For lending into retirement, evidence of ability to service the mortgage in retirement will be required.

If the evidence supports the ability to pay, the lender may allow a term upto their maximum, perhaps 75.

There is no mortgage product where payments reduce later. They are designed to repay the mortgage based on level payments throughout. In the early years, mostly interest is paid, In the later years, it's mostly capital.

An interest-only mortgage for the older person is classed as a lifetime mortgage and requires advice from an IFA or suitably licenced mortgage broker. 50 is a little young for such a product, but there's nothing to stop the borrower from remortgaging onto such a product when they reach qualifying age. Once again, evidence of ability to pay in retirement will be needed. As an example, Halifax has a product called Retirement Home Plan which works in this way. It isn't available direct, only via a qualified intermediary with advice.