Age limit for mortgages increases to 85 years old

Getting a mortgage when you are older can be more difficult and Enable’s IFA’s of Bishops Stortford know that traditionally banks and building societies have been reluctant to extend loans and mortgages to older borrowers. Lending to anyone over 65 has been seen as risky and unprofitable for so long that it’s meant mortgages for older borrowers have been rare. But Nationwide has recently increased its age to 85 years of age and Halifax has increased the age of their borrowing limit to 80 years of age. Which means that customers can now take out a loan and repay before their 80th birthday.

This is all part of a move by banks and building societies who have started to recognise the need for extending the age of mortgages because more people are living and working for longer. However before you begin the hunt for a mortgage in later life you should set out exactly what you need from your mortgage not least because applying for deals that meet your needs and requirements will increase your chances of getting approved.

Once you know what you want from your mortgage you then can exclude a large number of the deals as many banks place a maximum age limit on their mortgage deals and others specify an age limit by which the mortgage must be repaid.  The upper age limit for new applicants is usually set somewhere between 65 and 70.

Many lenders will limit mortgage terms to ensure the money will be repaid in full by the time the borrower reaches somewhere between 70 and 85. One other difficulty is that many mortgage lenders do not openly state a maximum age as offering you a mortgage is often dependent on your income too.

This means that while it is worth checking for a maximum age upfront, if you want to find out more about your options Enable’s’ IFAs can help talk this through, as we can look at mortgage deals from across the market place.

Your home could be at risk if you do not keep up your loan repayments

Source : The Telegraph

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
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