Any way to have a mortgage past 65?
Discussion
Hi all,
In need of some fairly quick advice if any mortgage types could help out - not for me but my Dad.
Due to a few circumstances he dropped off the property ladder around 8 years ago and hasn't been able to realistically buy a house. He is now able to, but due to him being 52, he's been told he can only have a 13 year mortgage.
His earnings are definitely not the issue as he earns a considerable wage but due to the above he can only borrow enough for a house that isn't anywhere near where they live at the moment (45 miles away is the distance you have to go to get one) and is about half the size of their rented property and in a little bit of disrepair.
The girlfriend and I are also sort-of looking at houses and it's a bit strange that we would be looking for a more expensive house than him but he earns twice as much as both of us combined. Not something he feels great about I guess.
I understand retirement age etc but is there any way he could mortgage past 65?
It's not a case of borrowing more as the mortgage repayments would go past ridiculous.
Cheers!
In need of some fairly quick advice if any mortgage types could help out - not for me but my Dad.
Due to a few circumstances he dropped off the property ladder around 8 years ago and hasn't been able to realistically buy a house. He is now able to, but due to him being 52, he's been told he can only have a 13 year mortgage.
His earnings are definitely not the issue as he earns a considerable wage but due to the above he can only borrow enough for a house that isn't anywhere near where they live at the moment (45 miles away is the distance you have to go to get one) and is about half the size of their rented property and in a little bit of disrepair.
The girlfriend and I are also sort-of looking at houses and it's a bit strange that we would be looking for a more expensive house than him but he earns twice as much as both of us combined. Not something he feels great about I guess.
I understand retirement age etc but is there any way he could mortgage past 65?
It's not a case of borrowing more as the mortgage repayments would go past ridiculous.
Cheers!
It will depend on his pension income. Some lenders will lend to age 75 if the payments can be supported by projected pension income (strange that lenders requires a projection of pension income for 13 years time to assess affordability when they have no idea what interest rates will be at that time !!) Some will also lend to age 70 or even 75 if it is a non manual occupation and retirement age will be past age 65.
Maryben said:
It will depend on his pension income. Some lenders will lend to age 75 if the payments can be supported by projected pension income (strange that lenders requires a projection of pension income for 13 years time to assess affordability when they have no idea what interest rates will be at that time !!) Some will also lend to age 70 or even 75 if it is a non manual occupation and retirement age will be past age 65.
If interest rates are that much higher in the future, then so would annuity rates be!megaphone said:
Check his pension age, it's likely to be 67 now. (that'll cheer him up even more!)
Probably correct but just had an argument with Halifax over an application where the state retirement age for the client will be 67 and mortgage will end at age 66. Halifax admit their system still defaults to age 65 so to go to age 66 they will still class the application as lending into retirement. Obviously he will need some way of maintaining that mortgage and should not enter in to a mortgage that he doesn't have a repayment or exit strategy for.
Having got that out of the way, yes there are various lenders who will allow the mortgage to run to age 75 and as long as he is 10+ years from retirement they won't ask him to prove his income in retirement.
I have arranged mortgages like for this people who want to minimise monthly commitments but make periodic lump sum payments, or who will downsize eventually.
I will struggle to help you immediately but I bet Sarnie could...
Having got that out of the way, yes there are various lenders who will allow the mortgage to run to age 75 and as long as he is 10+ years from retirement they won't ask him to prove his income in retirement.
I have arranged mortgages like for this people who want to minimise monthly commitments but make periodic lump sum payments, or who will downsize eventually.
I will struggle to help you immediately but I bet Sarnie could...
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