Darren Pescod, CEO of Theasktheexpertdarren Mortgage Broker LTD, offers his advice on a number of common questions and situations his clients face.

Q – “I am 64 and my lender has said I need to pay back the mortgage now as it was interest only. Can I get a new repayment mortgage over a new 15-25 year term?”

A: Thankfully the answer is now YES. In recent months we have had a few more lenders changing their lending criteria to allow the older borrowers the availability to borrow into their retirement, with some lenders offering 25 year mortgage deals even at the age of 64. Of course, the lender’s criteria would need to be met which would mainly be the reliance on your income into retirement to support the mortgage – this income could be from a variety of sources including private and state pension, rental income and earned income if available. A clean credit history would also be a requirement. The rates are still very competitive and you are not penalised for borrowing later in life.  Lenders offer a variety of rates including short and long term fixed rates; they may even consider an interest only mortgage again although this really does limit the choice of lender that we can approach. In summary, age is no longer a barrier to obtaining or extending your mortgage deal. If you find yourself in a position where you are being forced to repay an existing mortgage deal or are looking to move then options are available to you.

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