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Mortgages can be tricky to get at any age, but as you get older, does it actually make it even more difficult? There isn’t an age limit when it comes to getting a mortgage on a property, but you have to understand that with fewer years left in your life to repay your loan, it can make you less attractive to mortgage providers.
The average mortgage length in the UK is 30 years, and if you’re over the age of 50, then you’ll be passing the life expectancy age, so mortgage providers may see you as unfit for the mortgage. There are ways around this, however, to ensure that you can get around the age barrier to acquiring a mortgage, and we’re going to cover them in this article. As always, however, it’s best to hire a mortgage advisor in these situations as they can give you a clearer answer based on your specific needs.
To learn more about mortgages and find out whether you’re too old for a mortgage, then continue reading below, and we should be able to clear up any confusion.
Am I too old to get a mortgage?
Do lenders set age limits?
Whether you plan on becoming a landlord and renting your property out or buying a house to retire in, you’ll usually need a mortgage. However, whether you’re too old for one will depend on the provider as they tend to set their own limits in order to reduce the risk when giving out a mortgage to someone that may not be able to pay it all back before they die.
This doesn’t make it impossible to own a home in the UK. However, an 86-year-old man managed to buy one in 2022, so don’t give up hope!
What will lenders take into account when providing an older person with a mortgage?
The requirements for a mortgage don’t differ too far from a younger person buying their first home, and to meet the criteria, you must have:
- A sizeable deposit
- Strong credit score
- Proof of an ongoing income (even after retirement)
- A good history of paying back borrowed money
The main thing that’s different to a younger person buying a property is that time is, unfortunately, not on your side and so, you may have less choice when it comes to your mortgage length. This could make repayments slightly higher.
Which mortgage types can you get if you’re older?
There are still several options for mortgage types when you’re buying a home as an older person. These include:
- Fixed-rate
- Variable
- Tracker
- Discount
- Lifetime mortgage
- Retirement interest-only mortgage
As you can see, age does limit your options as a homeowner, but it doesn’t make it impossible.
