Mortgage after 40?

Fireflyaway

We will be renting for a while once we sell our house ( 2-3 years probably).

When we come to buy again, one of us will be late 30's the other early 40's. My parents say we are mad not to but straight away as we will struggle to get a mortgage once we hit 40....

Anyone over 40 who has applied recently ? Is it really that hard? What if we have a decent size deposit or pay it back shorter than 25 years? 40 doesn't seem that old to me!

lee111s

You should be fine. Retirement age is 65, that would give you 25 years as you've said.


If you can afford to of course, a bigger deposit with larger repayments is going to bring the term down

PixelPound

Retirement age is higher than 65 now for OP

kingstreet

Rough rule of thumb for state pension age;-

50s - 65
40s - 66
30s - 67
20s - 68.

Most lenders will use that for the end of the mortgage term with a few offering to age 70, sometimes with proof of pension contributions.

Fireflyaway

Thanks this is reassuring. I hope we can pay it off sooner but was my doubts about being accepted in the first place that scared me.

amnblog

Not sure why you would wait to purchase in a market where prices are rising.

Fireflyaway

We are not buying for the next few years because of schooling. I doubt we would get a mortgage now anyway!

swindiff

Retirement age refers to when you can now claim your state pension, but the rules about retiring have changed. You can no longer be forced to retire when you reach state pension age. I was allowed a 31 year mortgage 2 years ago at the age of 43.

kingstreet

swindiff wrote: »

Retirement age refers to when you can now claim your state pension, but the rules about retiring have changed. You can no longer be forced to retire when you reach state pension age. I was allowed a 31 year mortgage 2 years ago at the age of 43.

Did you have to provide any evidence of income past state pension age?

Post-MMR you would almost certainly have to do so today.

swindiff

No at the time I did not have to provide evidence of income past state pension age. However should you wish to you could just continue to work past state pension age.

kingstreet

swindiff wrote: »

No at the time I did not have to provide evidence of income past state pension age. However should you wish to you could just continue to work past state pension age.

That's not in question.

Here, we are talking about how long a lender will allow you to have a mortgage relative to state pension age in a post-MMR world.

If you now want a mortgage past 70 you will be required to provide evidence of income in retirement.

For cases past state pension age up to 70, some lenders will accept working that long is possible, without evidence of pension scheme membership while others might ask for proof of pension contributions.