What is the maximum age for a mortgage?

Technically speaking, there is no maximum age for a mortgage. However this is driven by each lender’s criteria.

Most lenders have a maximum age for standard mortgages. Generally speaking, high street lenders have a maximum age of 70 – 75. 

There are some who may consider age 80 – 85 and some building societies who may consider up to age 95.

Can I get a 30 year mortgage at age 55?

This is potentially possible, however it will depend on the lender selected.

Even if a lender will consider a term up to age 85, there could also be certain criteria that needs to be met.

For example, they may need to see that you are currently paying into a pension. They may also need to see what the pension income is predicted to be and that they feel it’s sufficient for affordability in retirement. This will be in addition to carrying out a credit check.

It’s important to check this before proceeding to application.

What age do banks stop giving mortgages?

This will depend on the lender.

Generally speaking, there will be a minimum term as well as a maximum age for standard mortgages.

For example, if a lender has a maximum age of 70 and a minimum term of 5 years, it’s likely that the maximum age would be 64-65 (depending on the lender’s criteria)

Can a 75 year old get a 30 year mortgage?

This could be a challenge as the age at the of the term would be 105.

It could be that if a standard mortgage isn’t available, then a Retirement Interest Only (RIO) or Lifetime mortgage might be more suitable.

These types of mortgages do not usually have an expiry date so a maximum age of term isn’t as much of a consideration.

It’s important to get the right advice before proceeding with a Retirement Interest Only mortgage or a Lifetime Mortgage.

At what age should you no longer have a mortgage?

There isn’t really a set age where you should or shouldn’t have a mortgage.

As far as being a borrower is concerned, you need to make sure that having a mortgage is the right thing for you to do. This will depend on your circumstances, priorities and that you have considered the alternatives (see below).

A key consideration is when you plan to retire as this could be a time where your household income could significantly change.

The most important thing is that you can comfortably afford any payments, both now and in the future.

What happens if you still have a mortgage when you retire?

You will still be expected to make the payments on any mortgage you have, whether or not you have retired.

If your plans have changed and you decide to retire before the end of your mortgage term, it’s important to make sure that you comfortably afford the monthly payments and maintain your living costs.

If you are coming to the end of an interest only mortgage, it is important to get the right advice on your mortgage options and plan accordingly.

Can I get a mortgage on a pension?

This is potentially possible, but will be dependent on the lender.

For lenders that do consider pension income for mortgages, there are usually different ways they assess income.

Some lenders may need to see the income being received. Other lenders may consider transferring the pension pot into an income value for mortgage purposes.

What are the risks with mortgages for older borrowers?

Mortgages in retirement do come with risks that need to be considered.

These include –

• Reducing the value of your estate
• Reducing the inheritance for your beneficiaries
• Taking on a long term debt
• Having a monthly payment to service
• Potentially reducing the availability of means tested benefits

 Getting specialist advice and considering all options is vital to achieving the right result.

What are the alternatives to standard mortgages?

Firstly, you need to consider whether taking out a mortgage is the right approach.

Alternatives to a mortgage could include –

• Downsizing
• Moving to a cheaper area
• Assistance from family
• State benefits
• Renting out a room
• Taking a part time job

If some or all of these aren’t suitable for you, then a mortgage might be the right option.

If so, the main options are –

• Standard mortgage for older borrowers
• Retirement interest only mortgage
• Lifetime mortgage

How can a mortgage adviser help?

You need to consider the alternatives and if a mortgage is the right thing to do. You also need to consider all of the options available to you. Whether it’s a standard, retirement interest only or a lifetime mortgage, a specialist broker will give you the advice you need. 

It’s also good practice for your Mortgage Adviser to work closely with other professional advisers as appropriate. These could include your Wealth Manager, Accountant or Estate Planner. 

This approach will help make sure that all of the advice is complimentary in terms of getting the best outcome.