Mortgage options for older borrowers
Finding a suitable mortgage is always a tricky and involving task and, rather than getting easier the older you get, it tends to become even more demanding.
That said, choosing a mortgage doesn’t have to be an uphill struggle. While some lenders are less keen to offer deals to older borrowers, there are options open for people who want to move home or take out a second mortgage. Understand the potential pitfalls and advantages of buying when you’re older before setting out to find a lender.
Understanding how age affects mortgage applications
When it comes to mortgages, banks make their money on the interest they charge on the amount you borrow. If you pay off your mortgage more quickly, banks have less of an opportunity to charge you interest and can therefore sometimes see you as a less reliable or profitable investment. For a basic yet comprehensive guide to some of the most commonly asked questions about mortgages, have a look at this need-to-know list from uSwitch. You should also be aware that many banks do have a maximum age limit on their mortgage deals and some will require you to repay the loan in its entirety before you reach a certain age.
Age is a significant barrier for many potential borrowers, as detailed in this interesting article about mortgage choices for older people by Chiara Cavaglieri in the Independent. The recent global economic difficulties have had far reaching effects and one is a list of stricter rules and regulations surrounding mortgages. Some of these changes are having a negative effect on the willingness of banks to lend to older borrowers, although they certainly haven’t made it impossible.
Mortgage options open to you
Before you apply for a new mortgage, there are some things you should always be aware of. The Citizens Advice Bureau offers an excellent breakdown of everything you need to know before approaching a potential lender. You may also want to consider the services of a mortgage broker, who has extensive knowledge of the kinds of products available and also knows the kind of criteria you need to fill to be eligible for them. Turn to The Guardian for some impartial advice on finding a broker who will work hard to help you get the best deal.
With the help of a broker, it’s possible that you’ll be able to find mortgage offers that are specifically designed to suit your demographic. National Counties Building Society has recently launched one such product – an 8 year fixed rate for borrowers up to 80 – find out more in this report from the Financial Reporter.
At Money.co.uk, spend some time reading a variety of hints and tips for choosing a mortgage when you’re an older borrower. It has a comprehensive collection of information that’s well worth understanding before taking the plunge.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Silversurfers Editor (see all)
- 4 reasons to go on an activity villa holiday with the family in 2017 - January 23, 2017
- Could these be the world’s most comfortable shoes? - January 23, 2017
- Look after the pennies! - January 22, 2017
- Searching & Finding People, Friends, Ancestors UK - January 22, 2017
- 5 Ways to Make your Bedroom more Chic - January 22, 2017
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!