In this brief guide, we are going to discuss what the maximum mortgage age is and how you can still get a mortgage if you are an older borrower.

What is the Maximum mortgage age?

Different mortgage lenders will have a different maximum mortgage age and this may even differ further based on the type of mortgage you are after. E.g retirement interest-only mortgages will usually have a maximum mortgage age of up to 90 and above in some cases whilst most normal residential mortgages will have a maximum mortgage age of 65 or 70 in some cases.

How do mortgage lenders decide the maximum mortgage age?

When considering what maximum mortgage age a mortgage lender may place on the mortgage product you are after, you should be aware that this maximum mortgage age has typically already been placed on the mortgage product when it was being drawn up but some mortgage lenders may be flexible with their maximum mortgage age.

A mortgage lender will usually only be flexible with their maximum mortgage age based on when the borrower intends to retire or based on how the borrower’s income is being derived and if it will continue throughout the mortgage term.

If you are a much older borrower looking to get a mortgage and you are concerned about the maximum mortgage age then you may want to speak to a mortgage broker who will have experience of which mortgage lenders may be willing to lend to you and how to put together your mortgage application.

There are also specialist mortgage brokers who may be able to help you get a mortgage even if you are a much older borrower.

Why do mortgage lenders view older borrowers as being risky?

Older borrowers are viewed as being risky to mortgage lenders due to the fact that the mortgage lender does not believe that the older borrower will have a stable and reliable income which they can depend on to keep up their monthly mortgage repayments.

This means most mortgage lenders will view older borrowers as being much more riskier than borrowers who are still in their working age.

For this reason, most mortgage lenders will have a maximum mortgage age on their residential mortgage products. 

You may find that this limitation is less strict on buy to let and retirement mortgages e.g equity release mortgages.

How do you improve your mortgage affordability as an older borrower?

If you are an older borrower and you are worried about the maximum mortgage age then you can do some of the below things to improve your chances of getting a mortgage:

Have a large mortgage deposit

A large mortgage deposit will reduce your loan to value and hence will reduce the mortgage lenders risk on the mortgage. 

This will make it much easier for the mortgage lender to give you a mortgage offer.

You may be able to use any of the government schemes below to increase your mortgage deposit:

You can check if you are eligible for these government schemes by using a government scheme eligibility calculator.

• Lifetime ISA– gives you a government bonus of £1,000 if you save the 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- same as 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.

Buy a standard construction property

A non-standard construction property will increase the mortgage lenders risk and hence a mortgage lender may be unwilling to lend to you.

By buying a standard construction property you will increase your chances of getting a mortgage offer incredibly.

Increase your credit score

Increasing your credit score is another way you can get over the maximum mortgage age limitation.

A mortgage lender may be more willing to lend to you if you have a good credit score whilst a bad credit score will reduce the number of mortgage lenders willing to lend to you if you are a much older borrower.

Have a stable income

A stable income from your place of employment or your pension will go a long way in ensuring a mortgage lender will lend to you even though they have a maximum age limit.

Keep the mortgage term short

If you can keep the mortgage term short and within your time of employment or before your retirement age then you may find that your mortgage options and mortgage affordability will increase.

Use a mortgage calculator

Using a mortgage broker

You may want to consider using an independent mortgage broker to get a mortgage.

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 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.

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 easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. 

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

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

In this brief guide, we are going to discuss what the maximum mortgage age is and how you can still get a mortgage if you are an older borrower.

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

If you need financial advice and you live in the UK then you could 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.