Oldest age to get a mortgage up to?

[BigBoysDontCry]

I'm currently splitting up and will need to take out a small mortgage to give ex his share of the value of our house. It's currently mortgage free.

I'm 58 this year, currently working, ltv would be below 20%. I have no debts and the rest of the payment to ex will be my tax free cash from my sipp.

I'm not intending keeping the house long term but for the moment I need to keep it to house young adult DSs who aren't yet completely financially independent.

I'm trying to get an idea of monthly costs so I'm doing the various calculators but none of them ask for my age, just how many years I want the mortgage over. I can't find any details on what age they would allow me to borrow up to.

I'm not worried how long it goes into retirement as I should be able to afford it but in all liklihood I'd be selling and downsizing in about 5 years so would pay it off then.

I'd like to keep the monthly payment as low as possible so would want to stretch the term as far as I can.

Anyone know if there is a relatively standard age I can use for estimates without me completing a full application?

I remember when we were taking out our long mortgage, they were concerned that we had paid it off by our stated retirement age, but if you have other assets and can demonstrate you can pay when retired they may not care?

So ours officially runs to the state retirement age for our generation - 67 or 68 I forget which.

Thanks. I'd ideally want to run it past that age if I can as that only gives me 10 years. I have a pension in payment, a current work defined contribution pension plus a sipp. So on top of work income I have another £5.5k a year pension income and I'll have probably about £70k in my defined contribution and about £315k left in my sipp. House is worth about £320k and I'd be looking to borrow about £60k. I do have some savings on top but it's not enough to make up the c£60k I need and I don't want to be left with no savings at all.

I'm in a fairly decent financial position but I'd like to limit my outgoings as much as possible until youngest who is still at uni has a job. Elder has graduated but currently only working part time as he is struggling to get an appropriate job as he's autistic.

When we got a mortgage (3 years ago) we were told told it had to be paid off by the time the eldest one in the couple was 70.

Thanks, so looking like a max of age 70 then? It just seems so hard to find out without completing the application and I'm still deciding who to go with and exactly how much to borrow.

I did have a broker but he's as useful as a chocolate teapot. Keeps trying to get me to borrow £160k over 20 years despite me telling him that's not what I want and am unlikely to get I presume given I'd be nearly 78 when it ends.

There's interest only or equity release. Expensive of course.

You don't "need" to stay there though. Might be nice to get a fresh start even for the DC.

I guess I don't NEED to stay but I'd still need 3 bedrooms (currently have 4) and there isn't a great deal of price difference for somewhere I'd be happy to live, not enough to justify the costs of moving/fees etc. DS2 lives away at uni but might have to return in the short term but he loves this house. DS1 has some things he's involved in locally and his world is quite small so I'd not like to take him away from that. Personally the house has no emotional attachment for me.

When I downsize I'd like to go to a 2 bed really and might want to move closer to family so probably when I retire and have both DC settled. DS1 will be able to live independently but will always need support from a family member.

I’d speak to a mortgage advisor. Ours told us that if you can show you’re paying into a pension, most lenders will let you go into your early 70s

And no, neither of them would like to go live with dad. Eldest would do whatever he was asked to do. Given remarks ex has said about younger (to me, not him) I'd never put him in that position.

I've thought about interest only but as far as I could work out it seemed likely that the available term might be even shorter. I'd not go down the equity release route. I'm not desperate, the rates are shocking!

I did speak to a mortgage adviser, I thought he'd be helpful but I think there just isn't enough in fees for for I want for him to be interested and the rates he had were no better than I can get myself.

As an update, I decided to just give one a call and ask. First Direct will do past retirement (up to age 80) if you can pass affordability checks. I ended up getting an agreement in principle when I was on so hopefully that encourages ex to actually start looking as I can have the funds available in 4-6 weeks.

We were checking yesterday and ours goes up to when I am 72 and partner is 70. No idea how the mortgage advisor got that one through! The LTV was c.50% at the time of the last remortgage and it's not a particularly big mortgage by modern standards. It's was not because we could demonstrate that we had good pensions organised that would cover our current standard of living for those years, either. 🤔

Sounds like you need a new mortgage broker/IFA. They're not all like this.

I have a mortgage past retirement age, I had to sign a form from the provider confirming I was OK with this.

Not all brokers are like this- one of my colleagues has just done a 40k mortgage for a lady in a very similar position to you! Appreciate you may well be sorted now but for anyone else reading there ARE some good ones around!!!

Mine runs until I'm 75, but aiming to pay it off before then. For now though it has meant I can manage my mortgage payments. It's with First Direct if that's any help.

Oh I'm sure there are. A friend had a friend who used to be a very good broker but she's now given it up. She passed a message on to go to first direct (they don't deal through brokers anyway) which is why I went to them.

It was a broker at the same company as my FA (who I have no issue with at all) and FA was pretty hacked off with him too. I'm trying to be fair and thinking he maybe just has a lot on his plate but he was the 3rd bloke in a row I was dealing with for various things and they were all useless! Wasn't my week clearly... 😁

I'm not committed to anything with first direct but it means with an agreement in principle I can get ex to pull his finger out and find somewhere else to live (before he gets on my last nerve and leaves the house in a body bag... Only half joking as this would negate the need for a mortgage 😂)

Thanks to all for the help. It's all appreciated. I think I'm going to go for 20 years which will keep the payments pretty low. I can also overpay as much as I want as long as I don't fully repay prior to any any deal ending. E. G if I take a 5 year fixed I can't repay it fully prior to the end of the 5 years without a penalty. I think this might work well for me so I can reduce the balance if I feel I have spare money while I'm still working but I'm not over committing myself in case I feel a bit strapped initially.