Loan term age criteria for couples

Tarabern

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Applying for mortgage as first time buyers. I am the main earner, husband is an occasional worker at a uni and a stay at home dad. The mortgage amount we’d likely get is adequate and will be serviced solely on my income but broker says the term will based on husband’s age. He is 50 and I’m 40.

we’d really like to get a 20-25 yr mortgage for better repayment terms, which would be possible for me as a single applicant but I know it’s not an option for married couples.

Is it possible to do with any lenders if I’m the one paying off this mortgage (as it stands)? Broker wants us to use KBC. Thanks!
 

RedOnion

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Unfortunately it's standard that they look at the age of the older borrower.

If your husband was in employment, under normal circumstances there are a number of lenders that would give you a 20 year mortgage once he has a letter from employer saying he can work until that age.

Your situation is a little unusual in that it can be fully serviced on your income. It's the kind of case that should be getting to an underwriter in a lender to look at, rather than a 'computer says no' approach. It's where a good broker that knows what they're doing should be able to help you.

On what basis is your broker recommending KBC, and what term can they offer you?
 

Tarabern

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Thank you for your response! We are about to have a chat after getting the papers together with broker so I’ll bring this up, but wanted to be prepared. Haven’t made application yet.

As far as I can tell KBC is one of the lenders that offer terms only until age 68 as default. This is what I can’t find information on, can banks make decision case by case or it’s a hard no. Seems like there may be a chance if it gets assessed by an underwriter then. I’m not sure how good this broker is, was recommended by a friend and we’re in early stages yet.

On paper we can afford the higher repayments but I’m hesitant to commit to pay 500 EUR more than my current rent for 17 years because the bank says I could afford it. I’d probably pay off a longer mortgage early, but I’d like to have the option, less stress.
 
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RedOnion

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Ulster Bank, BOI, AIB, Avant, EBS, Dilosk will all lend to 70 if you can demonstrate ongoing affordability. KBC seems to have a hard cutoff of 68.

It's something that's changing slowly to accommodate changes in normal retirement ages. I think by default most of them still say 65 or 68, but will lend to 70. I know Dilosk will lend to 75 for buy to let, but I believe 70 is their max for a residential. However, they might be one of the more flexibility so they might be worth a call to check.
 

Tarabern

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Ulster Bank, BOI, AIB, Avant, EBS, Dilosk will all lend to 70 if you can demonstrate ongoing affordability. KBC seems to have a hard cutoff of 68.

It's something that's changing slowly to accommodate changes in normal retirement ages.
Thanks, when I was doing my research I noticed the differences too, which is why I was a little surprised broker recommending KBC. I had already mentioned this concern to him, I guess our situation isn’t as clear cut so thought maybe he knows how to position it. I’ll talk to him of course.

I will certainly not take no from one bank, I have the time to shop around and will explore more. On the other hand, I wish I could pay off and retire at 60! :)

Thanks for the advice and have a great day!
 

RedOnion

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Best of luck with it. And it'd be great if you report back as you progress as it might help others in the future.
 

Gordon Gekko

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Given how tight the lending rules have become, it’s amazing how lax the banks are on this point.

Ulster Bank will allow you to go to age 70 if you’re a member of a pension scheme.

So I just had to prove that I was a member of a pension scheme. But they never asked to see what was in there! I could have been contributing the bare minimum or invested in rubbish. My Normal Retirement Age is 65 but in theory I’m on the hook for chunky mortgage payments until age 70.
 

NoRegretsCoyote

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Given how tight the lending rules have become, it’s amazing how lax the banks are on this point.
The two may not be unrelated :)

The legal basis for the Central Bank rules makes no mention at all of age.

Banks will push further at other margins to write new business.
 
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