Age question

Petunia58

Hi. I'm divorced and need to move to a smaller property. I should have quite a large deposit and would only have to borrow about £40,000. However I'm now 55 and at the moment my income is not that great. Does anyone know if there are any lenders out there who will let you have a mortgage till you're over 70 as the monthly payments would be too much - unless I didn't eat? I can't, by any stretch of the imagination, afford to rent. Thanks.

kidmugsy

Look at National Counties BS.

ACG

It depends.
What age do you intend to retire?
When you do retire how will you pay for the mortgage? Do you have any private pensions?

Petunia58

Retire! I shall probably have to carry on working till I'm 93! Not much pension to speak of. Obviously I'm trying to increase my income so I may not need to carry mortgage on past 70 but in this current climate I'm being cautious.

Thrugelmir

Perhaps consider where you can afford to live rather than would like to live.

With interest rates likely to rise. Extending the term does you little favours. If you are unable to afford the outgoing with interest rates on the floor.

ACG

Im with the above, I think you need to be realistic.

Your options are going to be very limited. No lender is going to accept 93 as a retirement age. Anything beyond 70 is pushing it.

Once you start getting to that your options reduce and rates usually increase.

dimbo61

Many lenders will only look at your normal state retirement age unless you can prove you have a good pension from work.
I could only borrow up to 67

tvfreek

It would perhaps be more accurate to say lenders will assess the plausibility of the applicant's current job role continuining until 67,68, etc rather than anything else. Just because a lender can consider 70 at end of term doesn't mean it applies to all types of professions.

amnblog

Hi Petunia

Running mortgage terms beyond state retirement age has become increasing complex in the past couple of years.

Lenders will consider terms beyond 65 but the most common complication is that they make a decision based on the projected post retirement income for the individual. For example, if you were earning £15000 now, but your pension payments would be £10,000. - many lenders would let you mortgage to age 65 or 70 considering the higher income and beyond that only considering the lower income.

No provable pension with those lenders would mean no mortgage.

There are some lenders that take a more pragmatic view and will consider your occupation and your likelihood of being able to continue past state retirement age.

This situation is becoming a major complication for thousands who unlike the previous generation, did not take a mortgage once making no changes until it was paid off 25 years later, nor will enjoy the benefits of generous pension schemes in the private sector.

In these days of divorces, interest only arrangements, university fees, bank of mum and dad, and inadequate pension provisions, the system is broken and needs a solution sooner rather than later.

In your case, as for the majority, engaging a mortgage broker is your best hope of a result.