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Details
In General
Minimum and maximum age of applicant
The age of applicants varies from lender to lender but as a general rule it is between 18 and 65years. Some lenders will go up to the age of 70 but others will want to see proof of income if continuing after retirement. Proof could be in the form of rental income or a pension other than state pension.
Minimum and maximum term of mortgage
Normally the term of a mortgage is twenty-five years but may vary from one to forty years. This would depend on the amount to be borrowed, deposit amount and the age of applicant, i.e. if an applicant is 50 years it may not be possible for them to have a 25 years mortgage, most likely a 15year product would be offered
Lending into retirement
Lending into retirement means that the mortgage will continue beyond the normal age of retirement i.e. 65years. Lenders would require the applicant to provide proof of a monthly income beyond retirement age perhaps in the form of rental income or a private or occupational pension that would cover the mortgage repayments.
Number of applicants
As a general rule up to four applicants may apply for a residential mortgage.
Residency Status/Foreign Nationals
All non-UK nationals are required to provide proof of identity and the right to live and work in the UK. Generally loans are viewed case by case but applicants would not be offered a 90% loan to value mortgage. 75% loan to value is probable with a 25% deposit required.
In the case of refugees or asylum seekers, documentation from Immigration and Nationality Directorate stating ‘indefinite leave to remain’ is needed.
Lifetime mortgages
A lifetime mortgage is a loan offered to those homeowner’s age 60years and over.
This type of loan is secured on the property buy no monthly payments are collected allowing people to remain in their home for as long as they want.
Interest is added and paid back when the house is sold on death or the death of the second borrower if it is a joint loan or when the applicants move into sheltered accommodation or a long-term care home.
Equity Release
Equity release is another way to free monies from a property. A lump sum will be loaned and interest will be charged on this and would be payable when the property was sold, leaving the remainder of the property value as inheritance.
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