Posted on 11 February 2011 by ian bell
Will I be able to get a mortgage when I am 70 years old?
I think that you will be able to get a mortgage when you are 70, but it will not be as simple as walking into your local bank.
An increasing number of Lenders have reduced the maximum age they will let a mortgage run until to 75 or lower. When this is combined with the minimum loan term they allow, usually between 3 - 5 years, many Lenders will not consider mortgages for people in their 70's.
All Lenders have a duty of care towards borrowers and they will want to be sure that you have the sustainable income to support the mortgage payments without relying on State support. It never makes good PR if a Lender is reported as evicting a pensioner from their home. Fortunately there are a very few Lenders with either a higher or no maximum age limit.
You will also need to consider how you wish to repay the mortgage capital? A short mortgage term can make the monthly payments very high if you are repaying the capital each month, whereas an interest only mortgage will leave you with the problem of how to repay a lump sum without selling your home.
Depending on your own individual circumstances and whether or not you have any children you may like to consider a Lifetime mortgage whereby the interest is rolled up and not repaid until the property is sold on your death or earlier if you move. These are specialist mortgages and should not be taken without getting independent legal advice first.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the adviser the date of your question, they will be able to look at your situation and take it from there.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.