Maximum age for mortgage lending (+3 insights)
In this brief guide, we are going to discuss the maximum age for mortgage lending
What is the maximum age for mortgage lending?
When looking at the maximum age for mortgage lending the number widely used and for good reason is the age you will be at the end of the mortgage term.
This is a widely used number as it allows you to compare different mortgage term options regardless of your current age and still bearing in mind that the mortgage lender has a maximum age you will be required to be at the end of the mortgage term.
Different mortgage lenders have a different maximum age for mortgage lending and this is all based on their own internal lending criteria although some mortgage lenders operate in a flexible manner and will lift this restriction based on individual borrower circumstances.
Some mortgage lenders will use either their maximum age for mortgage lending or your retirement age to determine the max-age you can be at the end of the mortgage term
Below is a table with the maximum age for mortgage lending for different mortgage lenders in the UK.
|Mortgage lender||Maximum age for mortgage lending|
|Halifax bank mortgages||80 years|
|Lloyds bank mortgages||80 years|
|Scottish Widows||80 years|
|Barclays bank Mortgages||70 years or your retirement age|
|TSB mortgages||75 years|
|Metro bank mortgages||80 years|
|HSBC bank mortgages||75 years|
|RBS mortgages||70 years|
|Nationwide mortgages||75 years|
|Natwest mortgages||70 years|
|Bank of Scotland mortgages||80 years|
|Bank of Ireland Mortgages||80 years|
|Paragon Mortgages||85 years|
|Santander mortgages||75 years|
Why is there a maximum age for mortgage lending?
The reason why there s a maximum age for mortgage lending is that the mortgage lender wants to be sure you can continue paying the mortgage till the end of the mortgage term and they have each calculated and found a particular age where they feel the borrowers they accept on to their mortgage products will likely be able to continue making the monthly mortgage repayments.
It is not completely clear how each mortgage lender has come to a conclusion on what the maximum age for mortgage lending will be but we can assume that they take into account when a borrower is likely to have an adequate regular income through their pension, savings or employment.
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 discussed the maximum age for mortgage lending
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.