25 year mortgage for over 50's

NewUser1972

Hello there. I am keen to understand people's experience and/or advice. I am 50 years old and my partner is 40.  We rent but we have enough money for a deposit (around 20%).  However we couldn't afford the (stressed tested) payments if the mortgage is over 17 years (i.e. until my retirement age). I have a pension but it wont pay anything like my income now.  We would apply for a joint mortgage but how is this likely to work? Are companies going to want to see it cleared by my state retirement age? Will they use my partners age (which is of course later)? Will they insist on any pension being sufficient or could I simply state I plan to work well beyond 70 (which I do and I have an office job so perfectly possible)? If we can make it work we plan to buy in the South of England and then move somewhere cheaper later in life, hopefully using the equity to end up mortgage free well before my mid 70's!  Thanks

ACG

Speak to a broker, there are a few ways to make it work - extending your retirement age is one that may work with some lenders. 

You could also look at part repayment, part interest only if you plan on using a lump sum form a pension to clear an element when you do retire. 

Beyond the high street you have building societies who can be quite flexible. 

NewUser1972

ACG said:

Speak to a broker, there are a few ways to make it work - extending your retirement age is one that may work with some lenders. 

You could also look at part repayment, part interest only if you plan on using a lump sum form a pension to clear an element when you do retire. 

Beyond the high street you have building societies who can be quite flexible. 

Thanks, I had always assumed that your mortgage basically needed to end at your state retirement age at the latest but if you can say you plan to work through long enough to qualify for a 25 year repayment period then thats a relief. Thanks

ACG

Its not quite that simple but I suppose it can be. 
Some lenders stop at 70, some will go beyond 75. 
Some say they go beyond 70, but the rules change if you go beyond 70. 

Vannaa

I'm 61, also currently renting, went through a broker and got an 18 year 90% LTV mortgage offer last month, based on current income only. I didn't have to provide any evidence of my income when I retire, which will be in six years time.

Queen_of_the_Hive

Interesting post. In similar situation, i'm 42 but partner is in his mid 60s. With a broker we are trying to get a 15 / 16 yr mortgage with 90% deposit but could possibly increase slightly.

simon_or

Both my current mortgage and previous mortgage go up to 80. Both are based on my current income and my stated retirement age of 80.

My broker put me with Barclays previously and now Accord. As per what she said there are a handful of banks that will go to 75 and 80 based on current income. To go beyond 75 you need to be in a desk or office based kind of role.

So at 50 you should be able to get a 24 or 29 year mortgage.