My wife and I are in our early forties (I’m 42 and she is 43). We have got £25,000 in savings between us and a joint income of £45,000. Is it possible to get a mortgage at our age and what is the longest term we can get? Are banks and building societies willing to end? Will they mind if we are still paying in our 70s?
Most mortgage lenders will give you a mortgage up until your named retirement date. If you want to continue paying the mortgage after that you will have to demonstrate to the lender that your pension, and any other income you may receive, will be sufficient to make the repayments and provide you with enough to live on. As you might expect, every lender is different which is why it’s worth using the services of an independent broker who can match products to your specific circumstances and requirements.
If you and your wife planned to retire at 70, you could reasonably expect to be offered a mortgage term of at least 25 years, if not 28 years. In addition to a multiple of your joint income, (say 4.5 x income), the lender would also assess your ability to pay the mortgage every month now and if rates were to rise by, say 2%.
To do this, they would look at your income and expenditure to get an idea of how you live and conduct yourselves financially. The lender would also run a credit check.
Do get in touch with our residential team if you would like a tailored quote.