In an era of much less defined life stages people are now looking to continue their mortgage lending into retirement.
Most lenders have already reacted by either offering a higher maximum age at the end of the mortgage term or no maximum age at all.
How do mortgage lenders assess how much I can borrow?
For residential mortgage applications on your main home: Lenders will assess affordability on either your current income or pension income, usually whichever is the lower of the two. This is still calculated based on income multiples and the amount of disposable income available.
Buy to let mortgage applications: lenders will use the income from the rent to assess the amount available to lend. Some lenders may also want to see the applicants have a minimum income outside of their properties rent too. More information on buy to lets.
What do I need to for a mortgage into retirement?
You can find what all mortgage applications require as minimum here, in addition to those documents those looking to borrow into retirement will need:
Residential mortgage: evidence of pension documents.
Buy to Let mortgage: evidence of pension documents although as the property should be self-funding i.e. the rental income is more than the repayments, they will only be using these to make sure you have an income outside of the buy to let.
Still have more questions?
If you are looking for mortgage lending into retirement, speak to Senate Home to discuss your current and future position.
Your property may be repossessed if you do not keep up repayments on your mortgage.