Mortgages are often considered to be an option for the middle-aged group but the desire to own a house can come at any age. Thus, even the older group may want to avail mortgages to finance their house. Honestly, there are very options available for this group. If you are an older borrower it may not be easy for you to find a lender but there is always a thin chance. Let me explain some of the things that you will need to know or drag in favor to get a lender come on your side of the river.
This tendency to lend to the old group has started in these last 5 to 10 years.
Prove That You Can Repay
Obviously, lenders will not pay until they are convinced that you can repay the loan in due time. So, you have to show and prove your financial prospect by showing your income from work (if any), from pensions, from investments, and from insurance policies. If all this income is not sufficient to convince the lender, you will have to get a guarantor to seal the deal. This guarantor should not only be financial sound to repay the debts but also agree to do the repayment if you fail in any case.
The Most Important Questions
The most important questions that you must ask yourself before starting the hunt for a befitting mortgage is, ‘How much loan you need and in how much time you can repay?’. The above questions must be answered correctly and that will make it easier for you to find the right kind of lender.
Know The Age Limit
All the lenders who are willing to finance older borrowers have set age limits and you have to know about these limits before applying for the mortgage. This age limitation may not be as straight forward as it may seem from the outside and so you have to talk to the lenders in person to know the tricky part of it.
Specialist Older Borrowing Mortgages
Besides the main stream lenders in the market, there are mortgage brokers who have specially designed offers and they are the best option for the older borrowers.
To make sure that you are on the safer side you should investigate and opt for equity release mortgage. The three types of Equity Releases are: Roll Up, Home Reversion and Home Income Plans.
Last but not the least; seek advice from a qualified, independent financial adviser.