We all end up with a reduced income after we retire in London, so that is why Lenders usually want the mortgage to getting repaid before your stated retirement age. They will consider lending past state retirement age in some circumstances, but only if the job you do is relatively 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 First Time Buyer Mortgage in London. The issue she had was that her husband was a little older, and she felt slightly uncomfortable with the monthly mortgage payments when I quoted her over the term to his state retirement age.
Evelyn had moved to the UK from Hungary and also had a modest property back home that she rents out. She planned 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 who got prepared to go eight years past his state retirement age. Evelyn and her husband may have left it slightly late to get onto the UK property ladder. Still, their application progressed with no issue, and they are now the proud owners of 2 properties, indicating a comfortable retirement for themselves when the time comes.
If you can relate to this scenario and need some Specialist Mortgage Advice in London, get in touch and we will see how a Mortgage Advisor in London may be able to help.