Right off the bat, the answer is yes you are able to get a mortgage for those who are over 40. However, it depends on your personal circumstances.

If the term of your mortgage extends past your intended retirement age and you are not sure of your retirement age, the lender might ask you to provide a projection of your pension income.

A recent research conducted by the Nottingham Building Society has suggested that almost half the Mortgage Brokers they surveyed had noticed a surge in declined Mortgage applications by clients who are in their 40's. If they directly inquired in blue world city Islamabad about clients aged between 45 and 54 who had been denied within the last two years, they said it was down on their age.

WHY IS THIS HAPPENING AND WHAT CAN BE DONE?

The first step is to turn the clock back some. Before the advent of computers for credit scoring and the scales of regulation that we observe in the present. If you came to at your neighborhood Building Society seeking a mortgage you'd probably be questioned by your Branch Manager or Mortgage Advisor. They'd look into your personal situation, and how well you've managed accounts in the past. Based on this information determine if your application was approved. If approved, you'd be advised of how much you could borrow, normally expressed as a percentage of your gross income.

But these income multiples did not take into account the age. Therefore, whether you were either 30 or 50 you could still borrow exactly the same sum. Even though this is fair, when both parties were set to retire at age 65 old, this would result in distinct effects for each. Let's look at an instance that uses a PS70,000 (capital and interest) mortgage, with an interest rate of 5%

* 30 year old - 35 years mortgage term - PS252pm approximately.

* 50 years old - fifteen years term for mortgage - PS395pm approximately

In this instance there are two identical income earners sharing the same mortgage debt but applicant two's monthly payment is considerably higher. Therefore, if mortgage rates increased, the risk of an arrears or repossession happening is much higher. This is the reason modern mortgage calculators look at the maximum term for the loan (i.e. you grow older) and also your earnings and expenses.

RETIREMENT AGE

Even though we are constantly reminded we will be working until an older age as a result of State Pensions, but the banks aren't thinking about this when they approve mortgages.

Lenders will consider granting mortgages after retirement, but only if you can demonstrate you would still be financially able to make the payments after retiring. This could be demonstrated by a letter from your Pension provider that contains a projection of your income in the future. But, it could be an issue since nearly everyone reading this will likely take less income when they reach retirement. This means that the Lenders will need you to show that you can still afford your mortgage based on that decreased income. In practice this hardly ever is the case unless you need only a very small mortgage which is the case in which case you probably wouldn't need to stretch the mortgage past retirement age.

You might recall that the default retirement age was abolished in 2011 and your employer is no longer able to force you to retire. Because of this, less mortgage lenders may be using the State Retirement age as the age you have to get your mortgage paid off and more and more lenders allow individuals to declare the age you intend to retire.

When it comes to the things you should be doing in the event that you find yourself in this position, you must prepare for being asked questions about the way you'll be able to pay for your mortgage in later years. Be aware that regulations are designed to safeguard consumers and promote prudent lending. If you require the loan term to extend beyond your normal retirement age, you'll be required to show that you are able to keep up with payments and supply proof if requested.