How to get a mortgage if you are an older borrower

How to get a mortgage if you are an older borrower

Getting a mortgage can be more difficult when you get closer to retirement. Here is how to find one whether you want to move house or remortgage your current home.

If you need to get out of a mortgage because of a relationship breakdown, read our guide to quick mortgage calculator.

What is the age limit for getting a mortgage?

There is no maximum age for applying for a mortgage. Be that as it may, most moneylenders have their own particular age limits:

When you take out the mortgage: Usually a maximum age of 65 to 80

When the mortgage term closes: Usually a maximum age of 70 to 85

This implies regardless of whether you are below the maximum age for a mortgage, its term could be restricted by how old you are.

For example, on the off chance that you are 60 and need a mortgage that must be paid off before you achieve 70, its term could be close to ten years.

You have a superior possibility of being accepted in the event that you have a strong credit history as a consumer and if your pay is sufficiently high to effortlessly cover the mortgage repayments.

Why would you need a new mortgage?

• To remortgage to get a better deal on your current home, especially if a fixed or tracker rate has ended
• To move house, for example downsizing to a smaller property

Why it can be harder to get a mortgage when you are older

On the off chance that you resign before you have completed the process of paying off the mortgage, you won't have a normal compensation anymore. Your income will more often than not go down, which means banks will be uncertain on the off chance that you will, in any case, have the capacity to bear the cost of the mortgage repayments

This means that offering you a mortgage is more risk as you get older. Moneylenders need to take after the Mortgage Market Review (MMR) rules, which mean they need to ensure you can stay aware of repayment over the full term of the mortgage.

Can you get a mortgage after you retire?

Yes, a few moneylenders will let you:

• Take out a mortgage after you have retired
• Take out a mortgage that won't be paid off until after you have retired

You should demonstrate that the income from your pension would be all that could possibly be needed to cover the repayments on the mortgage. It is typically less demanding to do this in the event that you are as of now resigned on the grounds that you can demonstrate the amount you get every month.

If you have not retired yet, you should request that your annuity supplier give confirmation of your:

• Expected retirement date 
• Current pension pot value
• Expected retirement income