If you’re thinking about applying for a joint mortgage, you may be wondering if there’s a maximum age limit? Perhaps you’re looking to borrow with a retired family member? Or, what if one of you is working and the other is retired? This blog covers all this and more, so read on for more information.
Is there an age limit on getting a mortgage?
You’ll be happy to hear that none of our standard mortgages have a maximum age limit. However, our family assisted mortgages (also known as Joint Borrower Sole Proprietor) do have a max age limit, depending on the loan to value (LTV). See below for details.
Joint mortgage with retired parent or spouse
There are several options available if you want to take out a joint mortgage with a family member. They include traditional joint mortgages, where everyone named on the mortgage is named on the property deeds and shares legal ownership. However, there’s another option that may be worth considering: Joint Borrower Sole Proprietor (JBSP) mortgages. These are also known as family assisted or family boost mortgages.
JBSP mortgages allow up to four people from two households to be named on the mortgage. However, only one or two people (usually the occupants) are named on the property deeds. This means family members can help with affordability without becoming legal owners of the property. There are also tax benefits to this type of ownership.
This arrangement can work both ways though, as family support comes in many forms. Parents may want to help their children on the property ladder. Equally, children may want to support a parent who’s experienced a change in circumstances.
At Suffolk Building Society we take a flexible approach and assess every situation individually.
JBSP mortgages allow families to support each other in a way that’s tailored to their situation. We also accept a range of income sources for affordability. These could include:
Income from a pension
- Investment income
- Income from renting out property
- Income in multiple currencies
- A salary if you have a part-time job
- Self-employed/freelance income
- Benefits.
Can I get a joint mortgage with my child?
You certainly can, and you can do this even if you are retired, or will be going into retirement during the mortgage term. If you want to apply for a JBSP mortgage some lenders will want all borrowers to be close family members. So, this could be parents with children. But it could also include aunts and uncles, grandparents, brothers and sisters, stepfamily, and adoptive family.
Joint borrower sole proprietor mortgage age limit
Our JBSP mortgages do have an age limit, depending on how much you borrow versus the value of the property. If we lend above 70% LTV, the maximum age of any applicant at the end of the term is 90.
Is the LTV on a JBSP mortgage affected if some borrowers are retired and others aren’t?
We can lend up to 90% LTV on residential mortgages, but there are restrictions:
- 70% max LTV if all applicants are retired
- 80% max LTV if the term takes the youngest applicant into retirement
- 90% max LTV if the term does not take the youngest applicant into retirement.
As you can see, there are plenty of options available if you want to get a joint mortgage, even if one of you is retired. So, do some research and decide which option works best for you. If you’re unsure what to do, or have any questions, consult a mortgage adviser or broker for advice.
If you want to get started today, why not complete our decision in principle form? It only takes around 10 minutes and will give you an idea of how much you could borrow.
