Am I Too Old to Get a Mortgage?
Posted on January 31, 2019
With news that owning a home is cheaper than renting in every part of the UK, the urge to get onto, and move up, the property ladder is greater than ever. It’s not just first time buyers that are getting on with the business of purchasing property, people in their 50s and 60s are looking to remain property owners or get onto the property ladder for the first time. With government property schemes like Help to Buy, Right to Buy, shared ownership and shared equity offering great incentives for first time home buyers and existing homeowners, now couldn’t be a better time to buy. But could older home buyers have missed the boat? Here our Sunderland estate agents reveal more…
Age is no barrier for getting help
Government schemes such as Help to Buy aren’t aimed at young first time buyers. Whilst most first time buyers are aged 30 or over, purchasing your first property can happen at any stage of life. As a result, the Help to Buy scheme is open to all ages, the only criteria being that you are a first time buyer or existing homeowner, wish to buy a new build home, and are not using the scheme to purchase a second home or buy-to-let property.
Whatever your age, with Help to Buy you can apply to get help purchasing a home with a value of up to £600,000 in the UK. All you have to do is have at least 5% of the price as a deposit and the government will lend you 20% so you can secure a more affordable 75% LTV mortgage. To find out more about this scheme, visit the official government Help to Buy website.
Mortgages do have age limits
Unlike government schemes, mortgages do have age limits. This age limit varies from lender to lender, with some being more accepting than others to older buyers. Nationwide for instance has a maximum age of 85, which means that whilst you may not be able to apply for a mortgage at this ripe old age, you can be this age at the end of any mortgage term. Halifax on the other hand has a maximum age of 80. On average the maximum age you can be to take out a mortgage is between 65 and 80. The maximum age you can be when the term ends is 70 to 85.
As a result, getting a mortgage at an older age is considered more difficult the closer you get to retirement. If you have already retired don’t be deterred from buying. Some lenders may still let you take out a mortgage. You would however have to prove that your pension income is sufficient enough to cover your mortgage repayments.
Ready to get started with your property search? Whatever your age, our Sunderland estate agents have the property for you! Explore our properties for sale and become one step closer to finding your new home.