Age is now no barrier to getting a mortgage. In fact, a finance company has just announced it will offer new mortgages for those in their 80s.
Where a typical mortgage was once 25 years, the lending landscape has changed drastically in the decade since the financial crash.
Stricter lending criteria
Now buyers can get a 30-year or even 40-year term, which reflects both stricter lending criteria and a longer working life with the retirement age being pushed back.
But for older homeowners – perhaps those who have a property with a large amount of equity – there are generally fewer options to borrow but an increase in demand for home loans.
Finance company Together has launched its portfolio of mortgages that can run until an applicant’s 85th birthday. And with their shortest mortgage at just three years in duration, it means a homeowner or buyer could take out a loan at the age of 82.
Increasing maximum age
Pete Ball is Together’s personal finance chief executive. He said: “We’re increasing the maximum age at the end of the loan in response to what we see as a growing demand, and more lenders need to follow suit.
“The UK has an ageing population who have healthier lifestyles and are working longer, but many are surprised and frustrated by how few options are open to them when it comes to securing a mortgage.”
He added: “Together can take a commonsense view of each application, looking at other sources of income, such as pensions and investments, as well as salaries of people working past pension age.
“…provided the customer can afford their repayments, we’ll consider lending to potential customers in their 60s, 70s or early 80s.”