Are we too late

Conker2008

Hi all, after some advice please.

We are a couple in our early 50's (52/53) been together and married a couple of decades and renting privately, with neither of us previously being home owners.

Employment wise we are in a good position, having stable jobs, over 10 years with our respective employers.

Current credit situation is good too, all dependants left home but no savings that would class as a deposit.

Do we have any options for a mortgage considering our age or have we left it too late now? If anyone has options they can advise and next steps we would be very grateful.

Brie

I was mid 40s when we were first time buyers, albeit with a deposit. We then moved and ported our mortgage when I was 60 at a time when we had significant debt. The mortgage deal worked on the assumption that the mortgage would be paid off by the time I reach 70 and so included estimates of what I would be getting from pensions. I have friends where he was a FTB in his early 60s as well. So anything is possible.

I think the crunch will be the deposit. Maybe a specialist mortgage advisor will be required??

Jemma01

It's not too late, you should still explore your options. You're likely to face mortgage limitations if you don't have a deposit (like too high rates, fewer lenders etc). But I encourage you to shop around, better than renting, at least you build equity (if you pay towards the principle).

gwynlas

You need the services of a whole of market broker in order to get you the best deal.

A lot depends on affordability so as well as current employment they will be looking at income on retirement.

It should be possible for you to get a 25 year deal

ACG

There is no age limit on mortgages.

Where your age will play a factor is the term available and so that might affect repayments and affordability. But speak to a broker, have a chat. You might decide to proceed or leave it but at least you will know.

Rosa_Damascena

I am going to go against the grain here with my own personal experience.

I applied for a mortgage at the grand old age of 42, having paid off the mortgage for my first home in around 10 years, largely by working all the hours God sent at 3 different jobs. I also had a chunky deposit in savings, collateral and an exemplary credit rating. No mortgage provider would entertain me because of my age - the reason cited was not having 25 years of working life ahead of me - a wake up call that I was getting on a bit!!

OP - I think you are being a little naive, there is no such thing as a stable job and mid-life unemployment is a reality for even the most highly skilled individuals. You are in a better position than I was, in as much as there are two of you, so go for it. Work hard and save hard whilst the opportunities are there.

ACG

https://forums.moneysavingexpert.com/discussion/comment/82176732#Comment_82176732

Most lenders will go to age 70 no questions asked. So your age played no factor in their decision.

The issue is more likely that you held 3 jobs and they did not think holding down 3 jobs was sustainable. In addition there are over 80 lenders out there.

I am 42 next month. I could quite easily go and get a 25 year mortgage next year and at normal rates.

MWT

https://forums.moneysavingexpert.com/discussion/comment/82176732#Comment_82176732

No mortgage provider would entertain me because of my age - the reason cited was not having 25 years of working life ahead of me - a wake up call that I was getting on a bit!!

These days, at 42, pretty much everyone has 25 years of work ahead of them with the retirement age at 67.

A good broker would not have a problem finding a 25 year mortgage for a 42 year old if age was the only issue… (shorter terms are also available)

Rosa_Damascena

https://forums.moneysavingexpert.com/discussion/comment/82176998#Comment_82176998

This was over 10 years ago, I accept that the rules have been loosened since then.

There was no real discussion about my risk as an individual much less any disclosure about my employment, the reason cited was my age alone. They did me a favour, I'm in my forever home now and owe nothing to anyone much less a greedy bank.

ACG

https://forums.moneysavingexpert.com/discussion/comment/82177013#Comment_82177013

There is no way this is the full story.

I have been a broker for 14 years and we were doing mortgages to 67 back then.

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/82177013#Comment_82177013

Surely you submitted a form that had all the details they need to determine your affordability?

Affordability calculations are not just age, and they're not new. They could say for your age they can't give you 150k given your affordability, but if you had more time to pay back like 35yrs then your affordability changes.

Yes age plays a factor, it is certainly not the only factor. Someone at 60yrs of age, paid 200k a year, wanting 50k mortgage, wouldn't even be questioned, because he clearly can afford it.