A list of surprising jobs that could affect your chances of getting a mortgage have been revealed. Mortgage brokers have been warning professions such as firefighters, police officers, and construction workers are less likely to qualify for 40-year terms.
Longer-term mortgages of 30, 35 and even 40 years can be used to help borrowers reduce their monthly costs. But first-time buyers in careers with an early average retirement age may find it harder to get a mortgage, brokers are warning.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “If a borrower wants to take on a mortgage beyond normal retirement age, the lender will review the job they do to see whether this is feasible.
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“It makes sense as physically taxing jobs may simply not be possible into your seventies, such as policing or construction work. It is the lender’s job to ensure the borrower can afford the mortgage and will comfortably be able to pay it back, so those with desk-based jobs such as accountants or writers are more likely to have a mortgage into retirement approved.”
Mark said: “Nowadays, repayment mortgages are much more commonplace, but of course, this means a higher monthly cost, so spreading it over more years reduces the monthly outgoing. However, it also results in more interest being paid over the term of the mortgage, so borrowers need to monitor the overall cost and overpay as and when they can.”
Adrian Anderson of mortgage broker Anderson Harris told The Telegraph newspaper those who will not be able to work in their role for the full 40 years, house buyers would need to prove that. Jobs with lower typical retirement ages include police officers and firefighters as well as medical workers, construction workers, electricians, plumbers, decorators, pilots, flight attendants and Armed Forces, like the RAF, Army and Navy.