Are over-40s ‘too old’ to get a mortgage?

This week has seen news that a bank has been penalised for age discrimination after withdrawing a mortgage approval for a married couple in their 40s, on the grounds that the husband would be over 65 when the deal ended.

The Financial Ombudsman Service ruled in the couple’s favour and ordered the bank to pay them £500 in compensation, saying that the bank had relied on “untested assumptions, stereotypes or generalisations in respect of age”.

So should we be given the chance to keep up mortgage payments past the age of 65?  

It’s arguable that being 65 today  – in terms of health, lifestyle, fitness and expectations – is not the same as being 65 twenty, certainly forty years ago.

Also, 65 being the default retirement age has been phased out, and people can work as long as they choose to – employers are no longer allowed to discriminate against workers choosing to work beyond 65.

Mortgage affordability
A major factor could be the mortgage affordability rules introduced in April 2014, which take into account not only how much you are earning, but how much you are spending, and whether you actually have the money to make your monthly mortgage repayment.

Lenders are also keen to know whether you’ll you be able to afford it should interest rates go up, which they are likely to do, or if your circumstances change.

Check your credit report 
And keeping your credit report in order remains important if you are hoping to buy a property, as making sure your monthly repayments are made on time and keeping overall debt under control are likely to be key considerations for lenders.

Checking your credit report before you make the application can allow you to see what the lender would see, and give you chance to update any inaccuracies and correct any information that’s out of date.

The Experian Credit Score is a guide to help you understand your credit report, and how the way you’ve managed the credit you’ve had in the past might affect applications you’re making now.

You can find an updated version of this blog post here 

4 thoughts on “Are over-40s ‘too old’ to get a mortgage?

  1. Mike

    I recently got a mortgage at the age of 61 admittedly only for five years but that’s all I wanted………….but hey, you’re only young once so who knows 🙂


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