The Guardian looked this weekend at ways for us to improve our personal finances and avoid a ‘midlife financial crisis’. The article points to recent research which reveals that the age we plan to move to our ‘forever home’ is around 44, but borrowers looking to move up the housing ladder at this time are advised to carefully consider house prices and moving costs.
The good news is that some mainstream lenders have increased the maximum age at the end of the mortgage term, with some recently increasing their limit to 85. A longer mortgage term could therefore still be an option for those looking to keep their monthly payments down.
The Sunday Telegraph reported on figures showing that the number of self-employed workers has reached 4.6 million. In the mortgage market, all applicants are subject to the same affordability checks and are required to provide evidence of their income, but for the self-employed this can sometimes prove difficult.
There are options available however. At least 2 years of accounts or self-assessment returns are typically required, but with many people making the change to self-employment in recent years, this is not always possible.
Again there is good news, as some lenders have a more flexible approach to underwriting, perhaps accepting just 1 years accounts depending on employment history, or looking at contracts and future work that a potential borrower has in place.
What the papers said about mid life finances and self employed workers