Question: We’re a couple in our mid-forties and early sixties, and we’re unsure whether to stay in our current home or move somewhere more suitable for the future. We’re also wondering how mortgage borrowing works when one of us will retire much sooner than the other. How should we be thinking about this?
Mixed-age relationships are increasingly common, and they can present specific challenges when it comes to borrowing and longer-term housing decisions.
square PENSIONS How to protect your pension from Reeves's plan to overhaul system
Read More
If you’re applying jointly, your combined income will typically support affordability at the outset, but the lender needs to be satisfied that repayments will remain manageable once the older partner retires.
What really matters is being able to demonstrate clearly how the mortgage will continue to be repaid once retirement income replaces employment earnings.
The alternative is to opt for a longer mortgage term that runs into retirement. In this scenario, the lender will assess whether the younger partner’s income alone is enough to support the payments once the older partner stops working.
If the home is manageable, well located, and likely to remain practical as you get older, then staying put could be the simpler and more cost-effective option. You may also have the opportunity to remortgage or release some equity to fund improvements or other financial goals.
If you’re thinking about moving, it’s worth checking whether your current mortgage is portable. In some cases, you might be able to transfer your existing deal to a new home, which could help you avoid early repayment charges or disruption to your rate. Any additional borrowing, however, would still be subject to current affordability checks and needs to be assessed separately.
Ultimately, there’s no one-size-fits-all answer. What matters most is finding an approach that supports both your short-term priorities and your longer-term financial wellbeing. Speaking to an experienced mortgage adviser can help you explore the options in more detail and feel confident that the decision you make is the right one for both of you.
Read More Details
Finally We wish PressBee provided you with enough information of ( I’m 45 but my husband is 61 – how does this affect the mortgage we can get? )
Also on site :