There are so many factors to consider when you are applying for a mortgage. You will need to decide if you want a fixed rate or a variable rate, how much you are willing to pay in fees and how long to fix your term for. You will also need to be mindful of your age. In this blog, let’s take a look at what the mortgage lenders are looking for in terms of age restrictions and how your age can affect your mortgage choices.
Is there a minimum age to get a mortgage?
Firstly, let’s just make sure that you are not too young to get a mortgage! That’s right, there is a minimum age requirement when applying for a mortgage and that is eighteen.
So, assuming you are over eighteen, let’s now take a look at how old is too old.
How old is too old for a mortgage?
Well it’s not really about how old you are now, it’s more relevant to think about how old you intend to be when you retire. Remember, lenders need to see that you have an income that will cover the cost of your mortgage going out each month and still leave you with enough funds to pay for your other household expenses. If you are retiring, this income is likely to change and, in most cases, reduce.
Most mortgage lenders tend to assume that you are going to retire at the age of seventy. This is because most people do retire at seventy and mortgage lenders have a duty of care to only lend where they can see that you have the means to be able to keep up with the payments. Beyond retirement, your income is likely to reduce and you will be reliant on a pension.
Specialist lenders may be able to lend for longer
However, there are some lenders who are willing to assume that you will retire at seventy five or even eighty. They can fix your mortgage term accordingly. These are likely to be specialist lenders and they are likely to incur higher interest rates. Also, it’s possible that not everyone will be eligible for these longer term mortgage products so it is important to check with the individual lender to make sure that you are aware of all their exemptions.
So, rather than thinking about how old you are now, it’s more important to think about how long you intend to be employed or self-employed for. What age do you intend to retire and no longer have a regular income?
Whether you are in your forties, fifties, sixties or even seventies and you need to apply for a mortgage or remortgage, it is really important that you seek specialist mortgage advice. Make sure that you find a reputable whole of market mortgage broker, preferably one who has come recommended by a friend or family member, or one who has excellent reviews online. Give them a call, they should be willing to have an initial chat with you and at least give you a steer in the right direction.
Remember that whole of market mortgage advisors are not tied to any specific lenders so they have no reason to recommend one mortgage product over another. Instead, they should absolutely be able to get the very best mortgage rate for your individual circumstances.
Hudson Rose are an established mortgage brokerage, based in Gloucestershire but advising clients right across the UK. They have done away with the usual corporate ‘feel’ of financial services and are blazing their own trail, mostly in trainers! None the less, their reviews are outstanding and they are rapidly gaining a reputation as mortgage advisors who offer an exceptional level of customer service. Give them a call today on 0330 122 9920 for down-to-earth 5 star mortgage advice.
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