Many older home buyers might wonder if it’s possible to get a mortgage later in life.
If you’re 70 years old and looking to buy a property in Cardiff, the good news is that lenders are increasingly offering mortgage products designed to cater to older borrowers.
Whether you’re downsizing, relocating to be closer to family, or purchasing a home for retirement in Cardiff, mortgage lenders have a range of options available that could suit your circumstances.
While traditional mortgages are often associated with younger buyers, an increasing number of lenders are recognising the unique needs of older home buyers.
Many financial institutions now offer flexible mortgage options that take into account retirement income, pensions, and other financial assets. This means that age doesn’t have to be a barrier to securing a mortgage, even at 70.
Mortgages for those over 70 in Cardiff generally come with some key differences compared to standard mortgages. For one, lenders will often assess affordability based on retirement income rather than regular employment.
Additionally, some lenders may have upper age limits for when the mortgage needs to be repaid, while others are more flexible, particularly with retirement interest-only mortgages and lifetime mortgages.
What types of mortgages are available?
Several mortgage types could work well for a 70 year old in Cardiff:
Retirement Interest-Only Mortgages in Cardiff
With a retirement interest-only mortgage in Cardiff, you only pay the interest on the loan each month. The capital is repaid when the property is sold, typically when the borrower moves into long-term care or passes away.
This type of mortgage can be a good option if you want lower monthly payments and plan to stay in your home long-term.
Lifetime Mortgages in Cardiff
A lifetime mortgage in Cardiff allows you to release equity from your home without needing to make monthly repayments. Instead, the loan is repaid when the property is sold.
This type of mortgage can be particularly appealing if you want to free up cash for retirement while remaining in your home.
Standard Repayment Mortgages in Cardiff
Some mortgage lenders still offer standard repayment mortgages to older borrowers, provided the term fits within their lending criteria.
For example, the loan may need to be repaid by a certain age, such as 85 or 90. The lender will consider your income, often from pensions, to ensure that the repayments are affordable over the mortgage term.
How Do Lenders Assess Affordability?
When applying for a mortgage over 70 in Cardiff, affordability will be assessed differently compared to younger borrowers.
Since you’re likely retired or semi-retired, lenders will look closely at your pension income, savings, investments, or any other regular income sources you may have.
They want to ensure that the mortgage repayments are sustainable over the agreed term, especially if you’re opting for a repayment mortgage.
Additionally, if you’re applying for an interest-only or lifetime mortgage, lenders are more likely to focus on the property’s value and how it may cover the outstanding loan balance in the future.
Each lender has their own approach, so it’s always helpful to compare offers from different Cardiff mortgage lenders.
Maximum Age Limits and Mortgage Terms
One concern many older buyers have is whether there’s a maximum age limit for mortgages. The good news is that many lenders are relaxing their rules regarding older borrowers.
While some traditional banks may have an upper age limit, others are willing to extend mortgage terms well into a borrower’s 80s or even 90s. This means that even at 70, you’re not necessarily limited in your mortgage choices.
Some mortgage lenders have a maximum term of 10 to 15 years for older borrowers, while others allow you to take out a longer mortgage depending on your financial situation.
It’s always worth checking with a mortgage broker in Cardiff to explore your best options.
Steps to Take Before Applying
Before you start the mortgage application process, there are a few important steps to consider:
Check Your Credit Score: Even though affordability is based on income like pensions, lenders will still look at your credit history to ensure you’ve managed past debts responsibly.
Review Your Retirement Income: Gather all details about your pension income, savings, and any other financial assets that might support your mortgage application.
Speak to a Specialist Broker: A mortgage broker in Cardiff like us with experience in working with older clients can help you navigate the different options available and find the best deal for your needs.
Date Last Edited: October 11, 2024
