Author: Alejandro Perdigones

Source: Tododisca

Banks set specific requirements when granting a mortgage. It is essential to understand that banks always seek guarantees that they will receive the mortgage loan granted, along with the agreed interest in the contract signed with clients. Thus, the mortgage repayment guarantees dictate each bank’s requirements.

One of the most important factors for banks is that the mortgage applicant demonstrates adequate financial solvency. Another key point is the age of the person or persons applying for the mortgage.

Banks usually offer more favorable terms to younger individuals who demonstrate a good financial situation and solvency. This way, they guarantee the repayment of the mortgage loan, even with a long mortgage amortization period.

Maximum Age to Apply for a Mortgage

There is no specific age limit for mortgages in Spain. However, most Spanish banks have an age limit that they typically maintain in their policies. This age limit is generally negotiated by the borrower when other situations arise.

Thus, the age limit set by banks is that, by the end of the mortgage loan payment, clients should be a maximum of 75 years old. That is, the sum of the applicant’s age and the repayment term should not exceed 75 years. In some cases, it may go up to 80 years.

Another situation that can be considered is when many couples or married partners apply for a mortgage jointly. In this case, the bank will always consider the age of the younger person, applying the age limit criteria mentioned above. However, some banks also consider the income of the higher-earning partner.

The Amortization Term

An important element in applying for a mortgage is the mortgage loan term. This aspect is also influenced by the age limit set by the bank for applying for a mortgage. In this regard, the bank stipulates that the loan must be repaid by the time the client reaches 75 years old or the previously determined age.

The older the person applying for a mortgage, the shorter the proposed amortization term will be. Consequently, this will result in higher mortgage payments than if the person were younger. For individuals with significant financial solvency, the bank may agree to grant the mortgage loan at an older age.

So, what are the factors influencing the granting of a mortgage? It is essential to consider the age limit for mortgage approval, which will vary depending on the financial capacity of the individuals seeking the loan, as well as the amortization term agreed upon between both parties, the bank and the client.