What happens if my mortgage runs past retirement?

A mortgage that runs past the point you stop earning has to be affordable out of what you will then have. Banks assess the post retirement years against pension or other retirement income, and the debt burden limit applies to that smaller figure.

There is a genuine conflict in the sources here, and we would rather say so than pretend otherwise. Circular 31/2013 works to a 50 percent debt burden, while Regulation 29/2011 sets 30 percent for the post retirement position. We apply 50 percent, the more generous of the two, and we tell you which we have used.

In practice this is usually met before it becomes an arithmetic problem, because most banks apply a maximum age at final repayment, typically 65 for salaried and 70 for self employed applicants. Those are lender conventions, not regulation, and they differ.

If the term you want crosses your expected retirement, the structure of the file matters more than the rate: the term, the repayment profile, and which lender takes the most workable view. That is worth a conversation early, because it is expensive to restructure late.

Sources conflict: Circular 31/2013 applies 50 percent, Regulation 29/2011 sets 30 percent post retirement. We apply 50 percent and say so.