4 Questions You Should Be Asking About Mortgages for Over 50s
Decades ago, mortgages were fairly easy to get and most people were home owners in their early twenties.
These days, much has changed and it’s not uncommon for people to wait much longer before taking on the responsibility of a mortgage.
Still, with every passing decade, the rules seem to change and applying for mortgages for over 50s is not exactly the same procedure a person would follow if they took the same step in their thirties.
The tool to getting a mortgage (and a good one at that) is knowing what questions to ask.
Can I Get a Mortgage If I’m Over 50?
The short answer to this is yes, but it might involve a bit more time and research. Lenders don’t all follow the same rules, which means that some might say yes and others might say no.
Most lenders will have a cut off of about 65-70 years, with some lenders in the UK increasing this to 80 years, by which time the mortgage will need to have been paid off.
Once again, however, this will depend on the establishment.
Anyone aged 55 might be expected to pay off their mortgage sooner, which will impact the repayment amounts, and it can be difficult getting a property remortgaged in the event that repairs or maintenance needs to be done.
Anyone looking for a mortgage later in life will likely want to turn to small institutions because these are the ones more likely to deal with customers on a case by case basis (like in the old days) rather than ticking boxes on an application form.
Where Do I Begin With Mortgages For Over 50’s?
Starting the search for a mortgage can be a daunting task and it’s difficult to even know where to start. Mortgage brokers tend to be great sources of information because they have access to knowledge about the most affordable products on the market, as well as specific mortgage products that might suit someone over fifty.
Can I be Certain of Getting a Mortgage?
No, you can’t be certain of getting your hands on a mortgage, but you can up your chances of being accepted for one. One of the most important facets if being aware of how large a loan you need, as well as being clear about your ability to repay that loan.
Budgeting is a fantastic way of getting your finances in order and it will help you to see your finances the same way a bank might. You can also have a look at your credit score to determine whether you’d get approved for a loan.
What Do I Need To Apply For a Mortgage?
Getting all your ducks in a row when the time comes to actually fill in the application form will help to speed the process along.
When applying for a mortgage, the most important thing you’ll need is proof that you can repay the loan, and this means bank statements and evidence that you’ll receive a pension.
Those who haven’t retired yet will need documents that show how much they’ll be earning in retirement. Once you have the basic documents, ask your financial lender for a checklist of all the supplementary documents you’ll need – this ensures you’re going to submit a complete application so that you only need sit back and wait for your answer.
It’s important to remember that anyone who isn’t accepted for a mortgage can still turn to specialist lenders for mortgages for over 50s.
Keep in mind, however, that specialist lenders might have different criteria for lending, or they might have different interest rates.
Ultimately, however, preparation is the key to making sure you have the best possible chances of being accepted for a loan and that means asking the right questions.