? Or maybe you worry about paying off the one you already have. Whether you are buying your first home, renovating or trading up, your age will impact how much you can borrow. People are, on average, older than ever when buying their first home. House prices, bank-lending rules and being older before settling down are all factors.
Those who are self-employed must repay the mortgage by their 71st birthday at the latest. All of these repayment ages apply to top-up mortgages too, where home improvements are funded by borrowing against the equity in your home. Terms for PTSB mortgages can run to age 70 and the bank will assess applications on a case-by-case basis by considering your ability to repay a loan to the end of the term. This applies to first-time buyers, switchers and mortgage top-up applicants.
“Lenders are looking at projected values of pension funds. If you are self-employed with a good business, they want you to outline how you might exit,” he adds. Avant Money got into hot water last year when it was ordered to pay more than €8,000 to a man whose broker said he could not apply for a mortgage switch with the financial institution because he was over 70. The man complained directly to Avant, and the company’s head of mortgage operations told him its policy “does not extend to offering a mortgage to applicants over 70″.
“If you have some form of mortgage at this stage of life, we often see clients use this lump sum to clear their mortgage,” he adds.If you have a mortgage, mortgage-protection insurance will pay off the debt if you die. “You could apply for mortgage protection up to the age of 89 if you wanted and they will accept you if you are in good health,” says Hardiman.
“This allows you to extend the term of your mortgage protection at a later date up to age 85, without any medical underwriting. They can’t refuse you if you are in bad health.