Posted on 3 May 2010 by Sue
I am 56 and my partner is 58. We currently rent a property but would like to get buy a property once again. Is there any way we can get a mortgage at our time of life? We are both in full time employment.
There is no reason why your age should be a barrier to you getting a mortgage.
What you will find though is that Lenders will want to know how you are going to be able to afford the mortgage once you retire and that they will limit the term you can elect to repay it over. Typically the maximum age you can take a mortgage up to is 75, but there are a few who have a limit of 70 and at least one who will consider a mortgage up to age 85.
The length of the mortgage term can have a considerable effect on the monthly payments you need to budget for, assuming you repay the capital and interest each month and not just the interest.
To give you an example I have used a loan of £100,000 and an interest rate of 2.99%:
12 year term (age 70)- monthly payment £827.32
17 year term (age 75)- monthly payment £625.89
25 year term (age 83)- monthly payment £501.50
You need to weigh the monthly cost against the total amount payable as this increases the longer the mortgage term.
I recommend that you speak to an independent mortgage broker about your requirements.
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