Will age stop your customers from getting a mortgage?

Growing older is part of life.  And often, with age, financial security becomes more important than ever.

For many of us, owning a home is a huge part of that security. And for most people, that means getting a mortgage.

However, as retirement approaches, homeowners in the UK may find themselves in a tricky situation if they want access to a mortgage. Often the options on offer to them are limited.

You may have experienced customers who aren’t able to shop around or get a mortgage at all, simply due to their age.  Retirement should be a time to relax and enjoy life away from the pressures of the daily grind. And yet, many may find people themselves worrying about their home.

So why can having a mortgage in later life be important?

There are many reasons why people want a mortgage into retirement. It could be to support their lifestyle or to pay for home improvements. Or for some, it’s simply to allow them to stay in the home they love.

Here are a few examples to bring this to life.

Example 2

John and Beth want to pay down their debt as soon as possible.

John, 54, and Beth, 52 are on an interest only mortgage, with no repayment plan. Their joint income is £80k.

They don’t want to downsize as they love their property and location. They are looking at a capital & interest repayment product. They would like to keep their monthly payments low.

Example 3

Melanie has recently separated from her partner and needs a mortgage that helps her meet affordability requirements.

Melanie is 56. She is a nurse with an income of £45k.

Her priority is to remove her partner from the mortgage and avoid having to sell the family home and downsize.

As the mortgage will rely on her income alone, affordability as well as end of term age limits are stumbling blocks for her.

How can Perenna help?

Here at Perenna, we want to help homeowners make the most of their retirement. And for us, age is just a number. That’s why we’ve removed age limits. Instead, we assess mortgage applications on property value and whether the monthly payments are affordable (maximum loan to value limits may apply). This could make a huge difference for each of the examples above. It could be the difference between your customer achieving their goals and not.

Want to find out if Perenna could help your customers? Why not use our calculator to find out how much they could borrow? Or get in touch with the team to find out more.

Correct at time of publishing.