AIB only offer mortgage up to age 65

[sadie]

AIB now only offer terms up to age 65 (or normal retirement age). Most other banks allow up to age 70.
This affects affordability for the older applicant (likes ourselves in our 40's).
We could only get an 18yr term with AIB whereas with BOI for example we could get a 23yr term.
That 5yrs makes a big difference to monthly repayment amounts, and subsequently in affordability and stress tests the banks may do.
As we are finding out this, may lead to refusal of mortgage where previously it would have been accepted.

 

[NorfBank]

AIB now only offer terms up to age 65

AIB always limited mortgages to age 65.

 

[elcato]

This affects affordability for the older applicant (likes ourselves in our 40's).

True, but on the plus side the amount of interest you pay is less as the term is shorter. Ulster bank has/had the same limit also.

 

[44brendan]

I'm not aware of too many banks offering mortgages up to age 70. This would formally have applied to self employed where retirement at age 65 was not mandatory.

 

[NorfBank]

I'm not aware of too many banks offering mortgages up to age 70

Every lender offered mortgages up to age 70 except AIB.

 

[ClubMan]

Every lender offered mortgages up to age 70 except AIB.

I thought that BoI generally limited it to 65? I would imagine that all lenders may make exceptions depending on personal circumstances?

 

[44brendan]

Every lender offered mortgages up to age 70 except AIB.

I'm a banker and can state that we only offered mortgages up to age 70 for the self employed!

 

[NorfBank]

I'm a banker and can state that we only offered mortgages up to age 70 for the self employed!

I'm sure you are.

Your bank is in the minority.

 

[mwhich]

what about if I was 34 and my husband was 40, do you think they offer me a 30 yr mortgage if I was the principal earner?

 

[elcato]

Your bank is in the minority.

General concensus here seems to state otherwise.

 

[44brendan]

To be fair on this issue, most banks have changed their mortgage criteria in the past 3 years. For example, we have a core mortgage policy, but we are permitted to allow exceptions where overall risk is considered to be acceptable. these acceptions are now rare and most institutions are quite strict on all approvals (not just mortgages).
The best option, is to approach a number of financial institutions and put the proposal to them. It's slow, but taking out a mortgage is a big decision and it's better to have more than 1 option.

 

[Pyrite-home]

If you are applying for joint mortgage based on two earnings they take age of older one I think. So you are 34 and your husband is 40 you could only get a 25 year term.

With people having to stay where they are today cause of negative equity, pyrite problems, jobs or other issues, you dont see the years tick on. We will probably have to stay where we are for 5 yrs at least so after that I wonder would we get any realistic loan as we will be in our 40's. So in more ways than one you are trapped, you would want to have been pretty certain you liked that first house you saw .

 

[Ash21]

It seems to me that mortgage criteria between the banks is constantly changing. I know - we've been applying intermittently over the last couple years! It would be great if one you bankers or brokers could start a thread? Perhaps of the main active ones, AIB, BOI and KBC.

We have a property and are renting and renting. Apparently best to prove you can manage the two first.

AIB
Amount: Salary x 4.2
Amount after loans and mortgage: 2000 plus 250 for every child
Length: Up to 65 yrs
Rules on existing property: Rental history, existing mortgage subtracted from overall mortgage amount (this kills us!)
Employment: perm for min 6 months
Deposit: Up 92%

BOI
Amount: Salary x 4.7 (above earnings of 90K)
Amount after loans and mortgage: ???
Length: Up to 70 yrs
Rules on existing property: Rental history, existing mortgage subtracted from overall mortgage amount (this kills us!)
Employment: perm for min 12 months
Deposit: Up 92%

KBC
Amount: ???
Amount after loans and mortgage: ???
Length: Up to 70 yrs
Rules on existing property: ???
Employment: perm for min 12 months
Deposit: Up 80%

 

[monore]

I have a mortgage with EBS to age 69. Public sector employee

 

[amtc]

My mother has one with Permanent TSB till 70 (employee)

 

[Bronte]

That 5yrs makes a big difference to monthly repayment amounts, and subsequently in affordability and stress tests the banks may do.
.

Maybe it's a good think that AIB will not let you borrow into your reteirment years?

 

[ryaner]

It seems to me that mortgage criteria between the banks is constantly changing.

AIB
Employment: perm for min 6 months

BOI
Employment: perm for min 12 months

KBC
Employment: perm for min 12 months

Do the banks list these anywhere? I've always been under the impression that it was permanent and out of probation?

 

[Ash21]

No, it is only when you approach them and ask about the criteria do you find out. Which is very annoying in my view. If they had their criteria clearly laid out on their website it would save a lot time. Thats why I ask brokers and bankers for assistance.

I should have worded it it better. For example if you ring BOI today looking for a mortgage, they will want to see that you are permanent and in the job for minimum 1 year. Not probation plus 1 year.