Age limits on residential mortgages

Fazzy123

Hi, 

I am going to be applying for a residential mortgage soon, I am currently employed and have my own business. Are there any age restrictions on residential mortgages? I am currently 60 and being told by a mortgage broker (L and C) that a 10 year term is most likely the maximum I can take, which pushes the monthly payment up quite a lot. Is it not possible to get a longer term? 

Thanks in advance! 

MattMattMattUK

Fazzy123 said:

Hi, 

I am going to be applying for a residential mortgage soon, I am currently employed and have my own business. Are there any age restrictions on residential mortgages? I am currently 60 and being told by a mortgage broker (L and C) that a 10 year term is most likely the maximum I can take, which pushes the monthly payment up quite a lot. Is it not possible to get a longer term? 

Thanks in advance! 

Generally lenders do not like to have terms extending beyond retirement age or 70. If you go to an independent broker they might be able to offer a longer term, but it would depend on the breakdown of your income sources, however you may still find that 70 becomes a hard limit for them. 

DE_612183

Clydesdale used to do 75 - not sure if they still do as they come under Virgin Money now...

Hoenir

Income in retirement years may prove a stumbling block. 

amnblog

The answer to your question is not straightforward.

Most Lenders will run a mortgage to age 70. Some to 75 if you declare you intend to work to that age (they can be fussy with this is you are already in your 60s).

If you can prove your pension income can support a mortgage, Lenders can be less worried about when you retire and you can run your mortgage beyond 75.

MWT

If you can prove your pension income can support a mortgage, Lenders can be less worried about when you retire and you can run your mortgage beyond 75.

RIO products are a possibility as well with sufficient pension income...

poseidon1

Depends who you bank with.

I bank with Barclays. At age 66 they gave me a thirteen year mortgage to age 79, but were prepared to go as far as age 83 based purely on my state pension which was a bit of a surprise, since their published mortgage age limit is 80. 

 In that regard, maybe worth your while having a chat with Barclays even if you don't bank with them, that extra 10 years in your case makes a noticeably difference on a repayment mortgage.

As far as their underwriters were concerned  guranteed income sources was key to their decision.

 They disallowed from consideration all my sources of non guranteed ISA, SIPP investment income, as well as commercial property rental income. Had I been prepared to buy an annuity with some of the Sipp funds, the annuity would have bumped up the amount that could be borrowed.