AToM were exhibiting at the excellent Landlord and Property Investor Show at the ExCel over the weekend and in addition to the many Buy to Let enquiries received, there were a huge number from people who thought they could not obtain a Residential mortgage over the age of 70!
On the high street, this may still remain true in some cases as these lenders generally allow a mortgage term to last until the applicants normal retirement age. This used to be 65, it tends to now be 67, but the reality is it can be much later. Most lenders increased their maximum age at the end of mortgage maturity to age 70. However, we all know that people are working a lot longer now and repayment of such a large amount of money may not be possible in these restrictive conditions. So the option is to raise further finance to repay the original loan or sell the property. Thankfully, the first option is less onerous than it used to be. Many non-household named lenders will look at lending to customers to a lot later in life, assuming the customers can prove their continued ability to pay. This can take the maturity age up to age 80, 85 or even 90 and above. If the customer has a good and regular amount of income, a high level of equity in the property and can satisfy the lenders affordability requirements, then some lenders will be happy to lend.
This is the same with Buy to Let, where at least one lender we have access to allows the applicant to apply right up to age 80, with a 30 year mortgage term! Many others have no restriction on age either. Responsible lending and affordability are key in any lenders decision making.
Age really is no longer an issue and simply needs specialist advice from someone who offers a range of lenders from the ‘whole of market’, not just a restricted panel of lenders or the high street.