Can You Be Too Old To Take Out A Mortgage?

May 25, 2023

Continually rising house prices and mortgage rates mean that people are buying their first homes at a later stage in their lives than previous generations. The average age of the first time buyer is now above 30 in every region of the UK. 

Saving up for a big enough deposit is one of the biggest hurdles now faced by those people waiting to get on the property ladder. This process is even more challenging as rents are also rising steeply and the cost of living crisis is continuing to eat into household budgets. Adult children are living with their parents for longer on average in the UK. 

Furthermore, many people are buying their first home at an older than average age due to deliberate or circumstantial lifestyle choices. For example, the average age for getting married is now 31 in the UK, compared to 23 in 1970. A greater proportion of people also choose to travel or work abroad before settling down to buy a house or find a partner. 

All this means that some people are over the age of 40 before they begin to think about applying for a mortgage. A commonly asked question is “can you get a mortgage as an older borrower?” The short answer is yes, there is no legal maximum cut off age for being able to take out a mortgage. However there are some points to bear in mind. 

You may find that mainstream high street lenders will be more cautious about offering you a mortgage if you are over a certain age. However, much depends on the amount of deposit you have saved up and your income, and what other financial commitments you already have. 

The main considerations may be at what age you intend to retire, and what your projected pension income will be. This is because if you are over 45 or older, the standard mortgage repayment term of 25 or 30 years will extend beyond the standard retirement age of 66. 

This is the age that state pensions are currently paid from, but the government is intending to gradually phase in an increase to the age of 68 for both men and women. Even if you have a good private pension income, this is likely to be less than your current level of earnings. 

You may not have an official retirement age as part of your company policy or because you are self employed or run a limited company, but some mortgage companies will still have concerns if you are over the age of 50. This is because the older you are, the more likely you are to experience health problems or pass away before the end of the mortgage term.

As ever, it is helpful to have a good deposit saved up and a good credit score if you want to get a good mortgage deal. It may also be worth contacting a specialist broker who will know which lenders are most suitable for your circumstances.

If you are looking for poor credit mortgage brokers in the UK, please get in touch with us today.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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