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Original poster

Applying for mortgage & DH too old for 25 year mortgage ...

71 replies

Missisdoyle · 01/07/2014 21:28

We have sought the advice of 2 different mortgage advisors & they've both stated that as my DH is 47, we can only get a 17 year mortgage. He will probably be working until he is 70 anyway (!),so why is this so ? Has anyone else managed to get a 25 year mortgage, in their senior years ?

OP posts:
VivaLeBeaver · 01/07/2014 21:31

I'm in a similar position. Dh is 51 so we can only get a 14 year mortgage. I'm younger than him so took the mortgage out in my name only.

LizzieMint · 01/07/2014 21:36

Do you need it to be over 25 years? Have you calculated the repayments if you take a shorter term? We took our last mortgage out for 12 years, not because of age but because for the amount we needed to borrow, that was the term we could afford the repayments for.

Lucylouby · 01/07/2014 21:46

When we moved house last year, we could only take a remortgage until DH is 65, it was the policy of the building society where to had the mortgage from to only lend to 65. I guess you become more of a risk after that? More likely to be ill and not able to afford repayments or something. We were happy with that, we can afford to pay the higher repayments and would rather get the debt gone quicker if we can.

Original poster
Missisdoyle · 01/07/2014 21:49

A 25 year mortgage would mean we had more choices when looking for a house & could afford a 3 bedroom ,instead of a 2. I am currently a SAHM, as my boys are 3 & 1, so we can't take out the mortgage in my name.

OP posts:
SwedishEdith · 01/07/2014 21:51

Yes I was too old at 42 for a 25 year mortgage. You might assume you'll be working until you've 70 but the reality is that lots won't be able to

Original poster
Missisdoyle · 01/07/2014 21:57

I guess the banks are overly cautious about who they will lend to, now. I just thought it was worth a post. If in doubt - Mumsnet !

OP posts:
Original poster
Missisdoyle · 01/07/2014 22:03

I think that if you are expected to work to 70,you should reap some blummin benefits ! It's a grim enough prospect, as it is !

OP posts:
HeinousPieTrap · 01/07/2014 22:06

we did get one, though DH would "only" be 67 at the end of it - plus it was pre-crash so that might have made all the difference tbh. We didn't even have to argue the case, we just got a letter saying "you do realise this goes into normal retirement age?" and that was it. HSBC.

Spickle · 01/07/2014 22:31

We got a mortgage from Santander last year until I am 70.

dottyaboutstripes · 02/07/2014 08:03

We are 44 and are getting a 25 yr mortgage

Munchmallow · 02/07/2014 08:08

Mine is with the coventry building society and won't be paid off until I'm nearly 68

theflyingpig · 02/07/2014 11:44

If you can afford the higher repayments I'd frankly always prefer a mortgage that finished when you were 60 or so. It's dangerous to assume good health and employment prospects will continue past [or even to the very end of] your 50s.

Not everyone has the luxury of being able to do this, of course.

stargirl04 · 02/07/2014 22:58

I am 48 and got one for 26 years with Santander.

And my previous landlord, aged 60, got one that meant he would be working till 75.

Mind you, both of these approvals were before the new lending rules came in a month or so ago.

golemmings · 02/07/2014 23:08

We got our mortgage in 2007 when DH was 42 and we could only get a 23yr mortgage. The repayments are still manable though.

HygieneFreak · 02/07/2014 23:09

Can i ask please ...

If you are not on the mortgage of a house, can you still go on the deeds?

lotsofcheese · 02/07/2014 23:21

DP & I (both 42) have just been approved a 30-year mortgage by Santander. However, I have another property with a 10 year mortgage left on it; it's rental income will pay 50% of the mortgage thereafter.

HauntedNoddyCar · 02/07/2014 23:25

We moved last year when DH was 45. We had to have a 24 year term.

Ours was Barclays and their cut off was 70 for repayment hence the 24 year term.

christinarossetti · 02/07/2014 23:25

We've just had this sort of situation with Nationwide. We were originally told that as long as the oldest applicant paid into a pension scheme, we could get a mortgage that was in place until, in this case, they were 72.

They then said that it had to be both applicants with a pension plan in place, although we were still able to get a 20 year mortgage with a 'retirement age' of 68.

There may be other guidelines is there is only one income coming in, but it's worth checking with individual lenders.

Spickle · 03/07/2014 10:00

HygieneFreak I'm not an expert but no, I don't think you can be on the deeds without also being on the mortgage.

HygieneFreak · 03/07/2014 10:21

Spickle

I thought that was the case

10 years ago you could go on the deeds without being on the mortgage, but i read on here that it had recently changed

Jamie1981 · 04/07/2014 09:51

The fact that banks are unwilling to lend you the money on the terms you want should tell you something.
Are you following the statistics on property sales? I mean the actual statistics, not the BBC made-up statistics?
75,901 mortgage approvals in January. Since then, they've dropped steadily, with just 62,806 in April. Bear in mind that these numbers include remortgages.
There were 109,000 actual sales in February. Just 99,000 in May.
Property prices in central London are starting to fall. If you've followed the news this week you'll see that one foreign investor reduced the asking price for his home from £65k to £35m. That's quite a drop.
My advice: read the headlines and read what is not being said.
Why do you think mortgage lending is being tightened?
The simple truth is that the financial sector now fears a crash. This property bubble was engineered by Osborne to win an election, but he pulled the trigger too early.
By the end of the summer, my prediction is that prices will be plummeting in central London (don't forget, the central London prices were largely driven by foreign investors who will flee the markets as soon as prices start to drop). This will then filter out into a loss of confidence across the country.
I'm 42 and i rent. I'll continue to rent until i see value. I am not going to be a slave to a bank for the rest of my working life, only to step back and look at my pile of overpriced bricks and gasp "at last, it's mine", just in time for the Council to take it off me to pay for care.
The UK property market is underpinned with nothing but lies and half truths. Easy credit has pushed up prices, not population growth. How do i know? Well, the population didn't shrink between 2008 and 2010, but property prices did. It didn't suddenly grow last year, as Help to Buy was introduced. But property prices did.
Seriously, don't buy. A big crash is coming.

Bowlersarm · 04/07/2014 10:06

Our mortgage company would only give us a mortgage for 19 years in 2007 to coincide with dh being 64. We would have taken a longer

atticusclaw · 04/07/2014 10:10

Hygiene, I agree with speckle. Very very unlikely that a bank will let you be on the deeds if you're not also on the mortgage. This is because if the mortgage payer defaults on the payments they need to be able to exercise their charge over the property and having an owner who is not subject to the mortgage makes that difficult. It is possible it might be allowed if the mortgage is very small but even then they have to assume that if the payments aren't made then the property will have to be sold even if the amount owing on the mortgage is low.

atticusclaw · 04/07/2014 10:11

We were given a ten year mortgage when DH was 40 but that was because we also wanted interest only.

Bowlersarm · 04/07/2014 10:12

...,one if we could but now I'm really pleased we didn't.

I don't think there will be a big property crash. We are a small overcrowded island with limited housing stock. I just can't see a crash. Standstill maybe .

And if there was, I would still rather be paying a mortgage down now so ultimately we won't have to worry about finding rent for ever more.

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