According to the popular saying, “life begins at forty”. However, if you are applying for a mortgage when you are this age or older, you may find that you experience some difficulties.
Recent research suggests that a large number of prospective house buyers have reported age to be a factor when they have been refused a mortgage. A study conducted by the Nottingham Building Society shows that a quarter of the people turned down for a mortgage state that either themselves or their partner was deemed as too old by the lender, or they were unable to borrow over a sufficiently long term.
The problems may occur as lenders will generally only lend to someone up to the age of retirement. Once a person reaches this age, income may drop considerably and they may struggle to meet the monthly repayments.
For a person of 40 years or older, this would mean borrowing into their 70s and possibly older. Another factor is the new pension freedoms, allowing a person to take their pension as a lump sum. If this is spent unwisely, the borrower may not be able to afford to pay their mortgage.
Mortgage advisers have studied on a CeMAP training course, which provides information for cases like this, where a borrower is aged 40 or above. Seek professional advice so that you are aware of the best approach. Ideally, you will be able to save a larger deposit meaning that you will be able to borrow over a shorter term.
