What age is too old for a mortgage

hilton2006

Hi Everyone!

Me and my partner were looking to buy a house soon but as the market is slowing we are now thinking maybe we should rent in the area we want to buy to help us save for a mortgage. I am 24 but my partner is 12 years older (36). We would be looking to rent for a year or 2 before buying.

At what age will my partner find his age an issue when applying for a mortgage? He has a good secure job with a good pension too and we both have very good credit ratings. We would be looking at a 25 mortgage to start with but would hope to have it paid off much sooner than that.

The main purpose of renting would be to save more. We think renting would cost less than the mortgage interest so it seems to make sense? It would also allow us to check out the area and see how we feel about it (to be honest it is not as nice as the areas we have been renting in)

Any advice welcome!
Cheers! :beer:

dunstonh

At what age will my partner find his age an issue when applying for a mortgage?

In about 34 years time when he is 70.

herbiesjp

You should have no problems at all based on your ages

hilton2006

That is great news! Thanks for your help guys!

Dan_Collins_2

You should look at having no mortgage when you retire, so what age are they retiring? Mortgage wise most lenders are easy to deal with up to 70 but you can go longer depending on the younger persons status and is the younger person earning enough to maintain the mortgage.

cattie

My lender, Halifax were reluctant to grant me a term that went beyond my 65th birthday. When I moved & took out a new mortgage with them I found some pressure was put on me to think about reducing the term so that the mortgage would end when I retired at 60.

So I think it may depend on the lender & what the circumstances are. Mine are that I'm a single person with nobody else to help out with mortgage or other finances, so expect this has played a part.

sparklygirl1

When I spoke to our mortage company they said they can't discriminate on age. So even a 70 year old can apply for a 25 year mortgage....... Mad I know.

Roosh

I took out a new mortgage November 2006 (22 yr term if I remember correctly)... & I was 50. It is joint names & the OH is quite a bit younger than myself, so I shall be retiring at 65 and sending her out to work to pay the mortage while I enjoy myself!!! There was no problem getting it though. I am with the Abbey and they apparently will give a morgage up to 80yrs ... so I am told.

dunstonh

sparklygirl1 wrote: »

When I spoke to our mortage company they said they can't discriminate on age. So even a 70 year old can apply for a 25 year mortgage....... Mad I know.

That mortgage company is heading for a fine and a lot of upheld complaints if they made decisions on that alone.

Lenders will usually consider mortgages that go beyond retirement. However, they have a responsibility to ensure that you can afford the repayments beyond retirement. If you cannot "prove" that you can afford it beyond age 65 (rising to age 68 with the increase in state retirement age), then expect the lender to reject it.

Dan_Collins_2

Mr dunstonh is spot on, most lenders will lend at an elder age but you have to prove you can afford it. If you have a pension income and can prove it of say £40k per annum (Good one I know) and want to borrow £60 until he is 75 then he will in most cases get a mortgage.

Most lenders have stopped self certing and fast tracking (Lender does not ask for income proof) pension income cases as pension income should be provable.