Mortgage in mid 50s

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dubdub123

Registered User
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Hi, just trying to get some high level info to help someone out.
They are mid 50s in secure employment (garda) however retirement age is 62.
Homeowner, no mortgage and lets assume no other loans.
Looking at separation and whether they may be able to obtain mortgage... Will lender look up to age 62 only or go to later age as they expect to continue working? My own mortgage is up til my mid 60s.

Should they wait til legal separation agreed before taking out new mortgage?
Any other things to be aware of?

I did a transfer of equity myself few years back and bought my ex hpuse but this situatuon is different

Any info appreciated
 
The retirement at age 62 is not really relevant. It would make very little difference is they could work until 66.

At age 55, he will have only 7 or 10 years to pay off a mortgage before retirement, so no mainstream lender will give him a mortgage.

If they had 30% of the cost of a new house, they might be able to get an investment property mortgage.

Brendan
 
Ok thank you, appreciate it. He is a member there and I'll mention it to him to speak with them.
 
I’m in my 40s and have spoken one lender and a broker recently who have said they will lend to 70 if there is pension income.

Don’t forget a guard will get a big lump sum which could be used to pay down mortgage.
 
Dr Strangelove said:
I’m in my 40s and have spoken one lender and a broker recently who have said they will lend to 70 if there is pension income.

Don’t forget a guard will get a big lump sum which could be used to pay down mortgage.
Click to expand...
Thank you appreciate that.. thats a good call out about the pension.
 
Dr Strangelove said:
I’m in my 40s and have spoken one lender and a broker recently who have said they will lend to 70 if there is pension income.

Don’t forget a guard will get a big lump sum which could be used to pay down mortgage.
Click to expand...
That's right - it depends where you work.
 
Ok thats good information.
Any idea how the lump sum and the DB pension might impact ability to get loan?

To keep numbers easy, they are gonna get 100k lump sum and their pension is 36k pa and theres no maintenance payments.
They could end up with a small stare pension if they pick up work after they retire from Garda.

Any lenders that might consider them? Ive told them to chat with a broker and the CU to get some high level info.
 
he will have only 7 or 10 years to pay off a mortgage before retirement, so no mainstream lender will give him a mortgage
Click to expand...
Is that correct, I made an enquiry about getting a 10 year mortgage (55 years of age) and told that that would not be an issue? It was AIB.
 
I did a quick google and only found PTSB to clearly state their minimum mortgage term, which is 5 years and they will lend up to 70. However, using PTSB's mortgage calculator with a 5 year terms gives a mortgage of 86k based on a 60k salary so just over 1x salary. Mortgage multiplier increases as term increases.

I'd recommend speaking to a broker if dealing with the mainstream banks as no doubt they will be looking at affordability in retirement.

How long will my mortgage last for?​

Every mortgage has a life span or term. Our minimum term is 5 years and you could also possibly qualify for the maximum term possible which is 35 years. Our Buy to Let mortgages have a maximum term of 25 years.

Advice and FAQs for First Time Buyers | permanent tsb

Got a question about mortgages? Take a look at our FAQ or give us a call on 1890 500 121 for more info.
www.ptsb.ie www.ptsb.ie
 
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