Nationwide repayment age limit?

WLITC

I'm confused. I saw an advisor in Nationwide earlier this week and she suggested I could repay a mortgage up to the age of 70, so as I am 50 and turning 51 next Birthday, I could only have a 19 year mortgage. However, just looking on their website https://www.nationwide.co.uk/products/mortgages/borrowing-in-later-life it suggests I can have a standard mortgage as long as I repay by my 75th birthday. I called the branch and spoke to someone else and they said 75. However, when you go into the mortgage caculator on their site and it asks you what date you plan to retire, the oldest date in the drop down is 70, so I can't select 75. As part of completing the online caculator it does ask my age and term and I did put in 24 year term, and it didn't say anything at the end (when it shows how much I can borrow) to suggest I couldn't do that.


Does anyone know for definate that I can get a mortgage with a term that repays before my 75th as standard?

kingstreet

If more than ten years from your chosen retirement age, you enter retirement age as 70 but use a term which ends before your 75th birthday.

You will need to provide evidence of pension arrangements to justify the term.

You can't enter 75 as your retirement age.

You still need to figure out how you are going to make the payments until then!

WLITC

kingstreet wrote: »

If more than ten years from your chosen retirement age, you enter retirement age as 70 but use a term which ends before your 75th birthday.

You will need to provide evidence of pension arrangements to justify the term.

You can't enter 75 as your retirement age.

You still need to figure out how you are going to make the payments until then!

Hi Kingstreet, thanks for the response. Excuse my ignorance but I’ve seen similar comments before about some lenders willing have terms that end up to the age of 75 if you can keep up the repayments by being able to continue working to 75 or having sufficient retirement income.

Are you able to elaborate on the general criteria of being able to work and/or having sufficient retirement income? My role is administrative and office based so isn’t physically demanding so I would technically be capable of working to 75 if needed. Also I have a non contributory pension that’s 10% of my base salary so on my very rough calculations i estimate by 70 I would have enough in my pension to cover any outstanding balance on the mortgage. How do they define sufficient retirement income?

kingstreet

Ability to service the mortgage payments in retirement is the issue. Claiming to be receiving a lump sum at some future point giving you the ability to repay the capital balance won't normally be acceptable. This is because you can't be compelled to use such funds for that purpose.

Many lenders will want detailed evidence of income in retirement evidence to go past 70.

There are one or two who will accept a term to 75 as long as either;-

1) you have evidence of pension arrangements and/or;

2) it is plausible that you be able to work to that age.

Nebulous2

WLITC wrote: »

I'm confused. I saw an advisor in Nationwide earlier this week and she suggested I could repay a mortgage up to the age of 70, so as I am 50 and turning 51 next Birthday, I could only have a 19 year mortgage. However, just looking on their website https://www.nationwide.co.uk/products/mortgages/borrowing-in-later-life it suggests I can have a standard mortgage as long as I repay by my 75th birthday. I called the branch and spoke to someone else and they said 75. However, when you go into the mortgage caculator on their site and it asks you what date you plan to retire, the oldest date in the drop down is 70, so I can't select 75. As part of completing the online caculator it does ask my age and term and I did put in 24 year term, and it didn't say anything at the end (when it shows how much I can borrow) to suggest I couldn't do that.


Does anyone know for definate that I can get a mortgage with a term that repays before my 75th as standard?

I got a mortgage from Nationwide recently. Did everything by phone. They were quite relaxed about going beyond 70 - but advisor tried to talk down the term. I accepted reducing it by a year to finish just before 74 and he seemed happy with that. He gave the monthly rate for 18 years and then said "If you repaid in 17 years it would cost x per month instead, could you afford that?"



I said - "yes that would be fine, but I wouldn't want to go any higher than that." That pre-empted him trying again.