Category: Mortgages

How old should you be Before Taking out a Mortgage?

Deciding whether to take out a mortgage is never easy and making sure that you time it correctly is also tricky as well. There are many different factors that you need to consider and your age could be one of them. You may feel that you are too young or too old to take out a mortgage.

If you are young you may feel that you will not be allowed a mortgage because of your age. You may think that you should not be thinking about settling down yet, but keeping your options open with regards to this sort of thing. You may think that you will not be able to secure a loan because of your age. If you are older you may think that you will not get a mortgage as you are too close to retirement to repay it, you may worry that it is too much responsibility to take on or that it will be more expensive because you will be seen as more of a risk.

Of course, although you might be right about any or all of these factors, each individual case is different. Mortgage lenders do consider each case, they do not have hard and fast rules that apply to everyone. They will be interested in many factors and although age may influence some of them, it may not be the main reason for accepting or denying someone a mortgage.

They will want to know, overall, that you will be able to repay the mortgage. Therefore, they will make sure that the house is worth enough to cover the amount of money borrowed in case they need to sell it to repay the loan. After that they will look at the mortgage applicants and see if they feel they are capable of making those repayments.

They will look at salary as a big factor. Normally they will want you to have been in a job for three months or not be in a probation period with a job. This really has very little to do with age these days as people change jobs a lot more regularly as they used to. They will also want to make sure that you have the funds to make the repayments. This means that they will look at the money you have coming in and going out and see whether there will be enough left to cover the cost of the mortgage repayments. Again, this is not to do with age but more to do with whether you have the available funds at the time that you are taking out a mortgage. It can be also worth considering the fact that middle age may not be the best time to actually take out a mortgage. You might be more likely to have children at home and this will mean that your expenses will be higher and you may be in a couple with one of you at home looking after the children or perhaps sharing the job by both working part time. This could mean that you will not have the available funds and salary amount required by a mortgage company to lend you money.

It is also wise to make sure that when you are buying a home, that you are not likely to move very quickly after taking it on. This could be age dependent as you may be more likely to move, perhaps with your job, when you are younger, but once you have a family at school, you may not want to move them. As you get older you may also want to be closer to relatives, perhaps so that they can help you with looking after your children or so that you can help to look after them and so you will be less likely to move away from them. If you do move quickly, then the house may have reduced in value or not increased enough to cover the costs of moving. Moving costs can really add up and it can be easy to forget how much they cost. You have to pay for the solicitor, mortgage admin fees, removals and estate agent but you will also be likely to need things for the new home such as perhaps curtains and blinds, carpets, paint and wallpaper, lampshades and lamps and other bits and pieces just to make it comfortable. You may also then decide to do more major work so that the home suits you and your taste, perhaps refurbishing kitchen or bathrooms, extending, converting loft or garage and things like that which could cost significant amounts of money.
Do actually you are unlikely to be considered to be too young to get a mortgage as you are more likely to fit in the criteria that the lenders are looking for.