Getting your own home is a big dream for many people. But you might wonder - how old do you need to be before a bank will give you a mortgage? Let's talk about age and mortgages in simple terms.
In the UK, you need to be at least 18 years old to get a mortgage. This is because you must be 18 to legally own property and sign contracts.
Many people assume you need to be much older, but this isn't true. Even if you're just 18, banks and building societies will consider your application.
Yes, your age does play a part in whether you can get a mortgage, but perhaps not in the way you might think.
Being young doesn't mean you won't get approved. What matters more is:
Young people sometimes find it harder to get a mortgage because they haven't had time to build up these things, not just because of their age.
If you're young but have a good job, save money regularly, and have some credit history (like a phone contract or credit card you've managed well), you might find it easier to get a mortgage than someone older who doesn't have these things.
Getting a mortgage isn't just about how old you are. Lenders look at many other things when they decide whether to give you a mortgage:
Lenders want to know that you can afford the monthly payments. They usually lend you about 4 to 4.5 times your yearly income. If you earn £30,000 a year, you might be able to borrow around £120,000 to £135,000.
The more money you can put down as a deposit, the better. Most lenders ask for a minimum of 5% of the property's value. So, for a house costing £200,000, you'd need at least £10,000 as a deposit.
Lenders check your credit report to see how well you've managed money in the past. Paying bills on time and not having too much debt helps your score.
Lenders look at what you spend each month on things like bills, food, and travel. They want to make sure you'll have enough money left to pay your mortgage.
Having a permanent job rather than temporary work can make it easier to get a mortgage. Lenders like to see that you have a steady income.
Just as there's a minimum age for getting a mortgage, there's also a maximum age limit. This isn't about when you apply but about how old you'll be when the mortgage ends.
Most lenders set a maximum age of 70 to 85 for when your mortgage term ends. So, if you're 45 and want a 25-year mortgage, you'll be 70 when it ends, which is usually fine. But if you're 65 and want a 25-year mortgage, you'll be 90 when it ends, which might be too old for many lenders.
Some lenders now offer mortgages specifically for older borrowers, sometimes called ‘retirement interest-only mortgages’ or ‘RIO mortgages’. These can run until you pass away or move into long-term care.
Your age is just one factor that affects your ability to get a mortgage. Whether you're just starting out at 18 or thinking about your next move in later life, there are mortgage options available.
The key to success is making sure your finances are in good shape. This means:
If you're unsure about your options, talking to a mortgage advisor can help. They can look at your personal situation and find the best mortgage for you, whatever your age.
Remember, buying a home is a big step at any age. Take your time, do your research, and make sure you're ready for this important commitment.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
Sign up for tips on how to improve your credit score, offers and deals to help you save money, exclusive competitions and exciting products!
