Against the background of economic instability, rising housing prices and falling household incomes, mortgage lending has become more important than ever for people who want or need to buy a new home. This is especially true for young people who are just trying to start an independent life.
However, there are much more age categories in need of a mortgage. For example, the elderly population is in no less vulnerable position than the youth. The coming recession, if it happens according to a pessimistic scenario, may lead to a fall in housing prices in the future. Perhaps even to acceptable levels. But this is a question of the future, and for many housing is necessary or desirable right now.
In view of this, let's turn to the problem of age and obtaining mortgage financing. What age will be the limit for a person, after which mark will banks simply refuse the possibility of any serious credit financing? And also, having such an age limit, is there any way to increase it? After all, banks are always looking for benefits, they need your money, so having a conversation with them in the language of profits can open up new opportunities for you.
The main criterion: the amount of your age and the loan repayment period
In fact, there is no specific age limit. The decision to approve the loan is made on the basis of taking into account the amount of the current age and the term of the mortgage loan. The result cannot be higher than 75 years, so you can take out a loan for 25 years when you turn 50, and for 10 years when you turn 65.
A two-person loan or life insurance can increase the chances
But since no law establishes uniform rules in this regard, each bank has the right to independently determine the conditions for issuing loans, terms and age. In any case, the bank is primarily interested in two things: you will return the money and do it exactly after the period for which the loan is issued, because the interest is calculated from it, which you will pay on top of the returned amount.
Of course, it is recommended to contact several banks at once and compare the conditions, but without departing from the topic of individually determined age and term — you have the opportunity to increase your chances. For example, you can apply for a loan for two people, you and someone younger who can survive you and continue to pay for the mortgage. The bank may also require you to provide documents confirming the existence of life insurance, if it comes to "going beyond" the classic terms.
It should also be noted that the Spanish law does not set the maximum period for which a bank can issue a loan to a person. Nevertheless, the Bank of Spain has taken the position that all banks are not recommended to issue loans for a period of more than 30 years. In view of this, if you intend to take the longest possible loan, have time to contact the bank no later than 45 years.