Can I get a mortgage at 54? (+3 insights)

In this brief guide, we are going to answer the question “can I get a mortgage at 54 years old”

Can I get a mortgage at 54 years old?

Yes, you can get a mortgage at 54 years old but this depends on your own personal circumstances and the lending criteria of the mortgage lenders on the market.

Most mortgage lenders will have a maximum mortgage lending age and this means that the mortgage term must end before you reach that age.

The mortgage lender does this as they want to be sure that you will still be able to afford the mortgage for the duration of the mortgage term and hence they seek to limit how old you can be when the mortgage ends.

Getting a mortgage at 54 years old is, therefore, possible but it depends on the term of the mortgage and your personal circumstances.

This mostly focusses on your ability to repay the mortgage throughout the mortgage term.

What may affect you getting a mortgage at 54 years old?

There are various factors which may affect you getting a mortgage at 54 years old they include:

Type of property

If the type of property you want to get a mortgage for is a non-standard construction property then you may struggle to find mortgage lenders willing to lend to you. 

This may also be compounded by the fact that most mortgage lenders will not be keen to lend to borrowers who will be beyond their maximum mortgage lending age if the borrower is buying a non-standard construction property.

The mortgage term

The mortgage term is also a very important factor which will determine if you are able to get a a mortgage at 54 years old.

If you are trying to get a mortgage which has a maximum mortgage lending age then you will need to be below the mortgage lenders maximum mortgage lending age at the end of the mortgage term 

If the mortgage lenders maximum mortgage lending age is 75 then the maximum mortgage term you may be able t0 get at 54 years old is a 21-year mortgage term.

The size of your mortgage

The size of your mortgage may also play a part in whether you are able to get a mortgage at 54 years old.

Aside from the mortgage term, a mortgage lender may also look at the mortgage size you want to take out and may determine that the mortgage balance may be too risky for you to repay in full based on your age.

Alternatives to getting a standard mortgage at 54 years old

If you are over 54 years old then you could also take advantage of other mortgage options such as the equity release mortgage products which are built for borrowers above 54 years old.

Some of these products include:

Use a mortgage broker for your mortgage in principle

You may want to use an independent mortgage broker to help you get a mortgage on your new home.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle

This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.

This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.

If you are in need of advice about your money and you live in the UK then you may contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.