We all end up with a reduced income after we retire, so that is why lenders usually want the mortgage to be repaid prior to your stated retirement age. They will consider lending past state retirement age in some circumstances, but only if the job you do is fairly non-manual and as such it would be reasonable for you to carry on working to a later age.
Evelyn was in her late forties when she applied to us for a mortgage in Essex. The issue she had was that her husband was a little older and she felt slightly uncomfortable with the monthly mortgage payments when we quoted her over the term to his state retirement age.
Most clients often worry about their first quoted mortgage payments, however, more than often we are able to find ways to reduce it. This means helping you lower your monthly outgoings and trying to find you a better deal that will benefit you both personally and financially.
Evelyn had moved to the UK from Hungary and also had a modest property back home that she rents out (like a Buy to Let Mortgage). Her plan was to sell that property at some point in the next ten years and use the proceeds of the sale to pay a large chunk off this mortgage in the UK. That gave us both additional comfort about potentially extending the term on this new application to get those payments lower for her.
Fortunately, her husband was in a job where it would be reasonable for him to work into his 70’s and we found a lender in Essex who was prepared to go 8 years past his state retirement age. Evelyn and her husband may have left it slightly late to get onto the UK property ladder but their application progressed with no issue and they are now the proud owners of 2 properties in Essex, indicating a comfortable retirement for themselves when the time comes.