Is there an age limit for 30 year mortgage?

In this brief guide, we are going to answer the question “Is there an age limit for 30 year mortgage?”.

Is there an age limit for 30 year mortgage?

Yes, there may be an age limit for a 30 year mortgage as different mortgage lenders will have a maximum age for mortgage lending.

This is the age in which they expect the mortgage to have ended by. 

This means if the mortgage lender gave you a 30 year mortgage term the mortgage lender will expect that the mortgage has been fully paid off before you reach the age limit the mortgage lender has set.

If a mortgage lender has a mortgage age limit of 85 years old then to get a 30-year mortgage you will need to be no older than 50 years when you take out the mortgage. 

Do mortgage lenders always use the age limit?

In some cases, a mortgage lender will disregard the maximum age limit and not place this on you if you can show that you can continue to repay the mortgage beyond this maximum age limit.

How to get a 30 year mortgage term

Getting a 30-year mortgage term is no different than any other mortgage term, you will need to show the mortgage lender that you can indeed repay the mortgage in full and are able to make your monthly mortgage repayments for the duration of your mortgage.

To get a 30 year mortgage term you will need:

  • A mortgage deposit of at least 5%
  • A stable source of income such as a full-time job
  • A good credit score (although you can still get a mortgage with bad credit)
  • Funds to pay off the stamp duty incurred on the property at the time of purchase

Government schemes for a 30 year mortgage

Government schemes help you reduce the amount of mortgage deposit you may need to put down, reduce the price of the property or create a structure that increases your mortgage affordability much sooner than it would have been.

Some of these include first-time buyer government schemes whilst others in this list are accessible to you even if you are not a first-time buyer.

Government schemes are not available to you if you are getting a buy to let mortgage.

The Government schemes include:

  • Lifetime ISA– gives you a government bonus of £1,000 if you save a maximum £4,000 a year.
  • Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
  • Help to buy equity loan– gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership– You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy– similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy– This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy– allows you to buy your home at a discount price.
  • Preserved right to buy– same as above.
  • Right to acquire– similar to the above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.

Alternatives to a 30 year mortgage term

There are various alternatives to getting a 30 year mortgage.

If you are unable to get a 30 year mortgage then you may be able to get alternative mortgage products such as an equity release product.

Equity release products are usually reserved for people who are over 55 years of age.

Types of equity release 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.

In this brief guide, we answered the question “Is there an age limit for 30 year mortgage?”.

If you have any questions or comments please let us know.

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.