Mortgage or loan, BH14
75 years old. need mortgage or loan of 15k. Is this possible.
Asked on Jan 22 2014,
Home Finance in Poole |
It's not too long ago that the answer to this question would have been simply "no" - banks and building societies used to view lending to anyone over 65 as too risky and not profitable enough to justify. However, because people now work, earn and live longer than in the past, it has started to become easier for older people to get a mortgage. That's not to say that there won't be some hoops that you need to jump through in order to get yourself funding, though.
The conditions for older people to loan money for a house purchase are far stricter than they are for youngsters because banks want to make sure they can make their money back. The most important criteria you need to be able to fulfill is proving that you can afford it. Whether you are working or not, you will need to show the bank that you will be able to meet the payments without struggling. If you can, come with evidence of regular income from insurance policies, investments and pensions that can prove this. If you have not got sufficient evidence, you may be able to provide a guarantor who will agree to take on your payments if you are not able to any longer.
You should also make sure that you know what you are paying back. The limits on your mortgage will be far tighter than they are for younger people, as providers will want to make sure they are able to get their full amount paid back within a maximum of ten years - this means being prepared. You need to know that it is likely your repayments will be higher and that you will have less ability to fix interest rates, for example.
The best thing to do is to seek out specialist providers. This will increase your chances of getting approved, while speaking to a mortgage broker will help you to prepare everything you are going to need in order to come prepared.
Answered on Jan 30 2014,
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