It's never too late

First-time buyers do not have to be under 40. Growing numbers of older people are finding themselves house hunting on their own simply because they haven't got around to buying, or are divorced or separated.

Mortgage lenders report a sharp rise in borrowers aged 40 or over. In the past five years, the number of Abbey National's first-time buyers over 40 has risen by nine per cent to 20 per cent. Nearly 10 per cent of the bank's borrowers are divorced or separated, an increase of 13.6 per cent in the past year alone.

Other lenders say their statistics show a similar pattern. "The image of first-time buyers as 22-year-olds wanting 100 per cent mortgages has gone," says Guy Aldwinckle, head of mortgage product strategy at Abbey National.

If you are one of the new breed of fortysomething first-timers, what are your chances of successfully negotiating a loan?

Too old for a mortgage

Many lenders used to be reluctant to offer loans to the over-forties because they would be beyond retirement age at the end of the standard 25-year mortgage term. But mortgages and repayment methods have become more flexible and lenders are keen for business in a competitive market.

Halifax has no upper age limit for customers taking out or repaying a loan. "It depends on individual circumstances and the ability to repay, not age," a spokesman says. Nationwide also has no age limit. Abbey National requires you to pay off your loan by the age of 85. So a 75-year-old can get a mortgage, as long as it can be repaid over a period of years.

Getting a mortgage

It is much easier to house hunt when you know how much you can borrow. You should be able to borrow on the same terms as any other homebuyer. Older buyers often have large deposits to put down, maybe from a divorce settlement or savings. This gives them access to some good deals because they are asking to borrow a smaller proportion of the property's value.

Those who work should be able to borrow three times their income, or sometimes more. For those who do not have a job, possibly because they have just divorced and did not work while married, most lenders will accept income from maintenance payments (backed up by a court order as evidence), pensions, or benefits - as long as they are permanent.

Another alternative is to have a guarantor, who contracts to repay your loan if you default. Sometimes former spouses (who have been the main breadwinners) act as guarantors. The downside is that the borrower cannot escape their ex-partner. Also, the guarantor's future mortgage buying power will be restricted because lenders will take it into account.

Check your credit record, especially if you have never had a mortgage solely in your name before. Lenders use computerised credit scoring when they assess borrowers for loans and the more credit cards and loans you have the better your score will be, says Ray Boulger of mortgage adviser Charcol. "It doesn't matter whether you pay off all the loans or not but if you handle them well, it improves your score." You can obtain a copy of your credit file from Equifax (www.equifax.co.uk) for £2.