My bank won’t let me remortgage – what can I do? I’m 50, have an interest-only mortgage and get half my income from … – This is Money

A 50 year old IT professional reaches out to “This is Money” for help about his inability to secure a remortgage approval. Sarah Davidson from This is Money gives several pieces of advice as to help the middle aged man. She states that it is important to demonstrate the proof that you can afford the loan. She also points out that sometimes age limits can be a barrier as lenders aren’t eager to lend a long term loan to someone older and they will sometimes place a cap being that at the end of the mortgage term the mortgagee must be less than 65. Lastly the advice is to shop around and find banks more willing to work with you.

Key Takeaways:

  • Lenders take in many factors when considering if a mortgage is affordable. Some specialty lenders and small building societies will take bonuses into account.
  • Older borrowers may have difficulty because many lenders do not want a mortgage to go past retirement age and will often cap the age at 65.
  • A standard variable rate is almost never the best option for a mortgage. More favorable rates are based on income and expenditure. Paying school and university fees for children are an expenditure.

“If you were prepared to switch either part or all of your mortgage to a repayment loan, lenders would probably look more favourably at your case.”

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