One of the most reported aspects of the Autumn Statement was the rise in the retirement age. But what does this mean for homebuyers when it comes to getting a mortgage?
Most mortgage lenders have long used 65 as the benchmark retirement age, with many not lending past this unless borrowers can prove sufficient income to service the debt. But most of us are already likely to be working beyond that age, even before yesterday’s announcement. Now that the official retirement age will rise, are lenders shifting their expectations in line with this?
It is important that attitudes change. If borrowers have longer to pay off their mortgage, it makes the monthly payments more affordable. For example, we recently arranged a 20-year repayment mortgage for a 50-year-old client whose employer confirmed they could work until age 70. They were originally offered a mortgage up to the age of 65 but we were able to argue the case that a longer term was more appropriate and manageable for their needs.
Some lenders are more flexible than others and will assess on the merits of individual cases. Contact us for more details.