As many of us are living and working longer, it’s no surprise that the traditional approach to repaying a mortgage by the age of 65 isn’t the ‘one size fits all’ solution it once was.
There was a time when no lender would consider granting a home loan to anyone who couldn’t repay it by the age of 65 (the then retirement age for men.)
Financial institutions had been slow to reflect this changing socio economic shift by increasing the maximum lending age but there are now many more options open to the older borrower.
There are lots of reasons why you might want a mortgage much later in life. A second or subsequent marriage might mean buying a new home with a new partner. Rising house prices mean that people are getting on the property ladder later in life so therefore will repay loans later. The cost of property could also mean that mortgage free parents could look to free up capital to help their children buy their first home.
Whatever your reason, there is now more flexibility for those looking to take out a mortgage either after the age of 65 or that will run into your 70s, 80s or even 90s.
The Family Building Society for instance increased the mortgage term available to older borrowers taking out repayment or combined repayment and interest only owner occupier mortgages to a maximum age of 95. This now means that a 60-year-old could have a 35-year term, a 70-year old a 25-year term and an 80-year-old a 15-year term
The Loughborough Building Society removed its age limit for older borrowers altogether, noting that it would allow a maximum term of up to 25 years even if the borrower was over 70-years-old. And an internet search for mortgages for over 65s brings up a whole host of high street lenders prepared to support these applications.
Of course, any application will always be taken on its merits and your ability to repay the loan. For a chat about a mortgage or remortgage, whatever your age, contact us on 01952 820155 or drop into the Newport office.