Think carefully before securing debt against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
The good news is that we are living longer!
Life expectancy in the UK has improved significantly over the last 30 years. According to data from the Office for National Statistics, in 1980 the average life expectancy was 71 years for men and 77 for women. By 2018, that figure increased to 80 years for men and 83 for women.
With medical advances and improved awareness of leading a healthy lifestyle we are simply living longer. In fact, the world’s population is ageing at such a rate that the over 60s now account for 12%, and by 2050 this is predicted to rise to over 20%.
Many banks and building societies are adapting to account for this trend and as a result it is now more achievable for older buyers to secure a mortgage.
Applying for a mortgage later in life
There are plenty of reasons that people are looking to take out borrowing in later life including:
At present, there is no maximum age for applying for a mortgage. However, most lenders will have their own age limit which is usually between 65 to 80. When the mortgage term ends there is usually a maximum age of 70 to 85. This means that even if you are below the maximum age for a mortgage, its term could be limited by how old you are. Because you could retire before you have repaid the outstanding mortgage and your income will reduce, lenders could consider you as a high risk. Lenders are required to follow the Mortgage Market Review (MMR) rules, which mean they have to make sure you can keep up with repayments over the full term of the mortgage.
Some lenders are adapting to our changing society and becoming more flexible in the way they approach lending to people in later life and taking a more pragmatic approach when assessing individual borrowers, for example by raising the maximum age for borrowing to 89 with repayment by 94.
Although lenders are becoming more flexible with older borrowers, it remains challenging for older borrowers to identify which lenders and products are right for their circumstances and requirements. With so many different approaches towards how lenders currently assess borrowers and in what circumstances they are happy to lend, it can be overwhelming.
That’s where Derngate Wealth Management can help. As mortgage advisors in Loughborough, we can find the right mortgage deal for you and will guide you through the application process from start to finish.
Gary Fowkes comes with over 12 years of mortgage advice and protection experience, meaning you will be in good hands throughout the entire process and get the tailored advice you need, when you need it, from an expert.
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