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How hard is it to get a mortgage if you're over 50.
If my friend gets divorced and receives money from the sale of the family home, will she struggle to get a mortgage, even with a decent deposit?
Has anyone had experience of this?
Thank you.
the term will probably be limited to state retirement age unless you can prove how you would continue to pay it afterwards.
Santander do mortgages ending when you are 75. Similar circumstances - divorced at 49 years old!!!
Id suggest seeing a mortgage broker, might cost a few hundred, but worth it.
My MIL didn't have any issues that I am aware of and she would have been about 52/53 I think when she got the mortgage. Don't know exact financial details but similar situation that she had a good chunk of a deposit from sale of the family home.
Age should only come into it in terms of how long she can earn the necessary payments required to service the mortgage each month.
It'll be fine, there's a shitload of folk that this happens to at a similar age every year.
It all depends on how long she'll keep working to be able to pay the repayments.
If she's, say, 50, and plans to work to 65, there's no reason she can't get a 15 year mortgage. It's even possible to get mortgages with terms that go into retirement, but she'd have to be able to prove that she'd have enough income (from, say, a pension) in retirement to be able to cover the repayments and her other living costs.
Friends married in their early/mid 50s, had no real problems other than early retirement no longer an option.
Certainly with half the equity in the house and a bit of a downsize it's doable in your 50s, though we are mortgage free anyway.
I took on a new mortgage when got divorced at 50. Wish I hadn't. Statements come in showing payments til I die and it's really depressing. Still, you gotta live somewhere eh?!
My current mortgage runs out when I'm 72. Twice may age. If you have a deposit and arent asking for a huge amount you may be ok!
Lloyds were keen to know my retirement plans when I mortgaged last year at 42, but I just had to say I was planning to retire at 67.
I guess the risk isn't now, if your friend gets a mortgage at 50 for say 15 years, that's one thing, if She gets a 25 year mortgage to make it affordable she might have to sell up to retire.
Our friend managed it and she's late 40's after her divorce. It wasn't easy though and was touch and go.She was doing a second job to keep things going, but that's gone due to covid.
the term will probably be limited to state retirement age unless you can prove how you would continue to pay it afterwards.
It's all about affordability, age doesn't really come into it.
If someone can show enough income through pensions then they'll get a mortgage.
Yeh should be okay with a decent deposit, took out a 20yr mortgage on 4x income as a 49yo singleton but did have 55% deposit & good credit record. Got paid off last Monday 😇
had no problem getting a 23 year mortgage at 46 4 years ago, retirement plans/pensions where never even asked about. although by the time i get there retirement age will probably be 70 anyway.
Recently separated at 52 I,m not looking at another mortgage I,m just going to enjoy my life now and rent for the forcible future!
When your friend has a clear idea of her finances, I suggest she has a no-obligation discussion with an independent broker.
11 year Mortgage here with Platform - part of Co-Op Bank available via a broker. 25% deposit on a modest property and we are both 63. Downside is working until I'm 75, upside is rent & mortgage free for the remainder of our time.....
It might well suck having a mortgage into your 60s/70s but, work colleagues have mentioned how much private rental is at the moment....lordy lordy.....
As others said, mid 40's and 20 years for me with 20% down.
Thanks everyone.
Good luck to you all.