25 year mortgage for 49 year old?

shonamary

My husband and I are looking to buy a new home this year. At present, I have a mortgage, to which he was never added. I am 38, he is 49. Is it possible for us to still get a 25 year mortgage? And which lender would be best to approach?

UK007BullDog

The criterias change all the time but most lenders now insist on mortgage paid off by age 65, unless you can prove now that you get a pension which can support the mortgage and living costs.

If you cannot then really you should only be looking at 15 year mortgages. It should be paid off when the oldest goes into retirement.

Unless you can support the mortgage completely on your own income then just put yourself on the mortgage.

Ian_Griffiths_Halifax

shonamary wrote: »

My husband and I are looking to buy a new home this year. At present, I have a mortgage, to which he was never added. I am 38, he is 49. Is it possible for us to still get a 25 year mortgage? And which lender would be best to approach?

Do you have any lump sums which may be available to you within the next 16 years, Pension Lump Sums, old Endowment Policies, Inheritances etc, as these could be used to reduce your mortgage balance upon receipt.

If you KNOW the amount you will be receiving, then you could go for a Part Repayment/Part Interest Only mortgage over a 16 year term.

If you or your husband are Self Employed, many lenders will allow you to go beyond age 65 for a mortgage term but the most importatne thing is can you afford to?

UK007BullDog

Its actually 15 years as one works from the next birthday (50 years old).

I do not understand how advisers can say that investments, endowments or inheritances could be used to pay off a mortgage 10, 15 or 25 years down the line.

Investments and endowments can fail as some people have lived through. Yes, they could just scrape through to pay the mortgage but it is a RISK.

Inheritances are not laid down in stone. One can get disinherited. The persons expected to leave an inheritance could blow it all on poker or endless world cruises or just use it to fund a nice retirement. So, unless you are the child of a multi-millionaire with a trust fund in your name, do not bank (sorry for the pun) on it.

Ian_Griffiths_Halifax

UK007BullDog wrote: »

Its actually 15 years as one works from the next birthday (50 years old).

I do not understand how advisers can say that investments, endowments or inheritances could be used to pay off a mortgage 10, 15 or 25 years down the line.

Investments and endowments can fail as some people have lived through. Yes, they could just scrape through to pay the mortgage but it is a RISK.

Inheritances are not laid down in stone. One can get disinherited. The persons expected to leave an inheritance could blow it all on poker or endless world cruises or just use it to fund a nice retirement. So, unless you are the child of a multi-millionaire with a trust fund in your name, do not bank (sorry for the pun) on it.

Hence the reason for the word KNOW being in capitals! Also, I stated WITHIN 16 years.

UK007BullDog

I have been in the business long enough to have heard all the stories from people knowing exactly what is due to them in the future. I believe most of them 95% will have a very rude awakening when the time comes.

The Interest only mortgage should also be dealt the death blow. European countries who do not have such a mortgage market like we do, seem to be faring a lot better than us. They do not have issues or the repossessions like we do (taking out of the equation all the second holiday properties bought in places like Spain, Bulgaria etc. where people are now defaulting as well). We are so fixated on property its just unreal.

a1chap

Well I'm in a similar situation at 50 ...
I want to borrow monies to build on a plot I own freehold without mortgage, I also own a house free hold with a minimal mortgage.

I want to borrow £215K to which to cover the (150-180K) build cost on the plot..... this is less than 60% LTV on the existing property taking no account of the plot value, BUT it is five-times earnings.. AND i'm 50..

When I'm finished I should have 2 houses one with flat total worth £800K and I'm reduced to Mortgage brokers and iffy rates ??
pale_

SambaRamba

You are both a year older than my partner and myself and we recently emailed a mortgage advisor at Leeds Building Society with the same question, here is his reply:

In theory we can do a mortgage upto the oldest applicants 85th birthday so the maximum term would be 37 years, However if you are running a mortgage into the planned retirement age it is important that you fully investigate how you would plan to pay the mortgage once retired, If there are suitable pension plans / investments in place it would not be a problem but if the income was to substantially reduce it would obviously cause problems with the ability to make your monthly payments.

riverboat2001

Hubby and I are both on final salary pensions so this could help us. Hubby is 53 next month, and I have just turned 45