Can You Get a Mortgage with a Parent Close to Retirement?

The ability to obtain a 25 year mortgage with your parent will depend on several factors, including the lender's criteria, your financial circumstances and your mother's ability to afford the repayments, particularly as she approaches retirement age.

Maximum Mortgage Term Based on Youngest Applicant 

Some mortgage providers will base the maximum term of the mortgage on the youngest applicant, making it possible to a joint mortgage with an older applicant. However, it is unlikely you’ll be accepted for a joint mortgage if you’re not living with the other applicant in question. 

Any application will be assessed for affordability and you will have to be able to cover any existing mortgage payments alongside those of your mother's mortgage. If it’s necessary to take into account any of your mother's income, the maximum term will be determined by her age. 

Lending into Retirement 

There are lenders who will lend into retirement. The usual maximum age is 75 and it may be possible to persuade one of these to accept the risk. The problem if you’re not living in the property is that should you fall out with your mother for any reason, there won’t be as much of an incentive for you that would encourage you to keep paying the mortgage. Repossessing the home of an elderly lady does not make good press and lenders would rather avoid this if possible. 

Considerations When Getting a Mortgage with an Almost Retired Parent 

Here are some final considerations if you want to get a mortgage with a parent who’s close to retirement: 

1. Lender criteria - some lenders may have age restrictions on mortgage applicants, particularly regarding the maximum age at the end of the mortgage term. Your parent’s age, combined with the length of the mortgage term, may affect the availability of certain mortgage products 
2. Affordability - lenders will assess affordability based on your combined incomes and expenses. Even with a longer mortgage term, your parent's income and potential retirement income (such as pensions) will be considered to ensure that the mortgage repayments are affordable both now and in the future. It's crucial to demonstrate to the lender that you both have sufficient income to cover the mortgage repayments 
3. Financial stability - lenders will also consider factors such as employment stability, credit history and debt-to-income ratio when assessing your mortgage application. Having a stable income and a good credit history can improve your chances of approval 
4. Insurance and protection - given the age of most people close to retirement and the potential for changes in circumstances, it's essential to consider insurance and protection measures. This may include life insurance or income protection insurance to ensure that mortgage repayments can continue to be met in the event of illness, disability, or death 
5. Independent advice - it's advisable for both you and your parent to seek independent financial advice from a mortgage broker like John Charcol who can assess your specific situation and provide guidance on the most suitable mortgage options. We can help you understand the implications of different mortgage terms and ensure that you make informed decisions 

Getting a Mortgage with Parent Close to Retirement Summary 

Overall, while it may be possible to obtain a 25 year mortgage with your parent, it's essential to carefully consider factors such as affordability, lender criteria, and protection measures to ensure that the mortgage is suitable for both of you, both now and in the future.  

John Charcol can help you find the right option. Speak to one of our independent mortgage advisers on 0330 433 2927.