Many lenders aren’t interested in granting mortgage loans to older individuals for a variety of reasons. But the most common reason is older people are often retired and don’t have a steady income. This means that an elderly borrower will likely be incapable of repaying a loan and this is a risk many mortgage lenders are unwilling to take.
Fortunately, there are other mortgage lenders who are more than happy to transact with older people and Remortgage Fast can get you in touch with the best of them. If you are over 60 and are having trouble getting your mortgage application accepted, our experts can help you turn things around fast. Our services are available in Waterlooville, Gosport, Southampton, and other parts of Hampshire so get a free quote today with our online form. You can also give us a call on 02380-970-879 to make any enquiries.
What is the age limit for getting a mortgage?
The age limit for getting a mortgage is often dependent on the lender. Since there is no official maximum age limit for mortgage applicants, most lenders simply work with an age limit that suits their business. But generally speaking, mortgage lenders who’d rather not work with the elderly avoid applications from individuals between the age of 65 and 80.
Also, certain lenders who are willing to work with older people reduce the duration of a mortgage agreement according to the age of the applicant. The reason why the lender does this is to minimise the risk of the older borrower being unable to settle the debt. Asides from limits set in the terms of a loan agreement with an older person, mortgage borrowers often only accept mortgage applications from elderly people with a strong and consistent credit history.
All such mortgage terms are usually put in place to favour only the lender and not the borrower. Thus, it is very important to speak to an expert like us before applying for a mortgage loan once you are past the age of 50.
By working with our experts, you can avoid agreeing to a mortgage deal that isn’t tailored to favour your circumstances simply because you are older. We have years of experience in the field and have the competence to guide you towards the best mortgage deals for the elderly in Portchester, Eastleigh, Havant, and other parts of Hampshire. Contact us now via our online form or 02380-970-879 for more information.
Why is it harder for older people to get a mortgage loan?
Same as with any other business, mortgage lenders do not like to lose money. This is why they tend to avoid granting loans to applicants they deem to be too high a risk. Older people are considered risky to loan to because upon retirement, they likely lose their source of income and might be unable to finish paying off their ongoing mortgage. Because the future income of older people is to a degree uncertain, mortgage lenders aren’t naturally inclined to transact with them unless there is proof the applicant has a substantial amount of wealth that is capable of furnishing mortgage repayments.
The cause for this lender mode of operation can be traced to the Mortgage Market Review (MMR) which in 2014 required that lenders assess affordability on the part of the borrower as well as take into consideration various other factors.
If you are uncertain if you will be considered eligible for a mortgage due to your age, contact us now for a friendly chat on 02380-970-879.
What mortgages can you successfully apply for as you get older?
The older you get, the harder it will likely become to get access to standard mortgage products. But our experts can help you save time and stress by guiding you towards mortgage loan options that will actually be successful.
Since most mortgages have a duration of 25 years, it is not just people who are 60 and above that might have trouble getting a loan. People in their 40s could also have problems as they would likely be retiring before they are done satisfying their mortgage payments. But after taking into consideration your age and other surrounding circumstances, our experts can help you get a fixed interest rate mortgage. We can also help get a cashback mortgage, stepped mortgage, offset, or discount mortgage, depending on your circumstances or preferences.
Affordability rules and older borrowing
Due to the stipulations of the Mortgage Market Review (MMR), lenders have to assess affordability and take into account factors such as age of mortgage applicant and so on. This makes a mortgage loan application particularly difficult for certain individuals.
The goal of the MMR is to ensure that after retirement, borrowers will still be capable of settling their debt without problems. Most people aim to repay a mortgage loan before age of retirement but there are others who still need cash after retirement and try to get some by securing a loan on their home.
People in their 60s often have an easier time getting a mortgage loan but their options are often limited to shorter mortgage terms of 10-15 years. This means that those in their 60s must be able to show proof of their ability to repay a loan within the reduced time period of 10-15 years.
People in their 70s and 80s have a much harder time getting a mortgage but it’s not entirely possible. We can help find a lender that offers more flexible and personalised services to match the needs of people within this age range.
At Remortgage Fast, we are experienced in helping older borrowers find a mortgage lender that’s willing to take an older person’s personal circumstances into consideration, and we can provide such a service to you too.
Get approved for a mortgage after retirement
There are trustworthy mortgage lenders with no age restrictions on who they offer loans. Such lenders are rare but that’s why we are here to help put you in touch with them. Contact us today via our online contact form or call us on 02380-970-879 to speak to a specialist concerning mortgage loans for older people. Our broker services are stress free and you are guaranteed of getting the best value mortgage deal to suit your circumstance. Our services are available to older people in Portsmouth, Fleet, Petersfield, and other parts of Hampshire.