At what age can I get a mortgage?
Initially, you are entitled to take out a residential mortgage from the age of 18. However, the difficulty of getting a new mortgage or remortgaging becomes harder over the age of 55. Some mortgage lenders have extended the maximum age to 85 for when you end your mortgage term. However, some lenders are still stating 70-75 years old.
Why is it harder to get a mortgage when I’m older?
Banks are hesitant to approve loans that extend beyond your retirement age, as lenders have to follow the Mortgage Market Review (MMR) rules. They have to ensure you can keep up with the monthly payments over the full term of the mortgage. If you retire before you have completed your mortgage repayments, you will not have a regular income, despite the fact, you may still be able to support a mortgage, lenders don't take this into consideration.
How to increase your chances
To improve your chances of securing a mortgage you need to have a clear view of how you will handle your monthly repayments. Understanding your outgoings will help you know how much you can afford.
You should always look to improve your credit score ahead of a mortgage application, as this will also improve your chances.
Where should I start my search?
The best place to start your search would be with a reputable broker, as they would have a vast amount of knowledge and could help find banks with high success rates that lend to the over 50s market.
What will I need to show my mortgage provider?
You will need to provide evidence that you have sufficient income to support your repayments throughout your retirement; similar to how you would if you were working full-time. This would be in the form of bank statements, savings accounts and evidence that you are receiving your pension.
What happens if I can’t get a mortgage?
If your mortgage application is declined, that doesn't mean you can't obtain one. Just because one bank denied your application, try with another leader who specialises in over-50s mortgages as they might lend to you. Make sure you do your homework regarding good mortgage brokers in your area and keep a good credit score. This will all go in your favour.