Older Borrower

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Mortgages for an Older Borrower – are they harder to find?

Over the age of 50 you a generally classed as an Older Borrower and you might be concerned that it is more difficult to find a mortgage – but that’s not necessarily the case. We will help you explore different options to achieve your plans.

Why can it be harder to get a mortgage when you are older?

On any mortgage, lenders want to minimise their risks of not being repaid the money owed. With older customers, there may not be a steady income, and there’s also a higher risk that they could pass away before repaying the loan.

Provided that you have a good deposit and can demonstrate that the mortgage is affordable, though, you should be able to find a mortgage. In addition, certain mortgage products are specifically designed for over 55s. 

What is the age limit for getting a mortgage?

Many lenders do set upper age limits for mortgage applicants but these vary by lender. Some lenders won’t allow you to borrow past the age of 75, some set this at 80, and others have no age caps at all.

Can I get a mortgage at 60?

Yes – you can both buy a new property and remortgage at 60. As with any borrowing, it will depend on the property and your specific circumstances. Lenders will seek reassurance that your income will easily cover the monthly repayments. It might be easier to get a mortgage over 60 if you:

  • Contribute a large deposit – that reduces the risk to the lender, making you a more appealing customer.
  • Explore a shorter mortgage term – such as 10 or 15 years. While this will help you stay within any age limits, it will make your mortgage repayments considerably higher.
  • Finding a specialist lender – some banks or building societies will design a mortgage to suit your specific situation.
  • Exploring retirement interest-only mortgages – these mortgages are designed specifically for older borrowers. You only pay the interest due each month rather than reducing the capital you owe. There is no set end date – the loan is paid off when the house is sold, you die, or move into long term care.

What mortgages can you get as an older borrower? 

Provided you meet a lender’s criteria, there’s no reason why you can’t take out a standard mortgage. You will have access to all the most common mortgage types: fixed interest rate, tracker, offset or cashback mortgages. 

There are also alternative options to consider such as a Retirement Interest Only mortgage or equity release. 

Speak To An Expert

We offer complete flexibility around you and can meet either face-to-face or online via a video consultation. And with us all being qualified in our specialist areas and having access to a wide range of lenders, we are able to help you no matter which part of the mortgage journey you are at.

Should you use equity release? 

Equity release is a special form of mortgage that allows you to release some of the value locked up in your home. Also called a lifetime mortgage, it’s only available past the age of 55. These mortgages are often used as a way to boost income in retirement, or pay off an interest-only mortgage that has reached the end of its term. 

You can choose to receive a lump sum payment or use a drawdown system to take money as you need it. The money you withdraw is only due for repayment when you die or enter long term care. 

Equity release can be a very helpful product in various circumstances, but it’s very important that you fully understand how it works and what it means for you – so it’s crucial to seek specialist financial advice. 

Can you get a mortgage after you retire?

It is certainly possible to take out a mortgage after retirement, or get a mortgage that you will continue to repay once you have retired. 

You will need to demonstrate that your pension income will comfortably cover the repayments on your mortgage. If you haven’t retired yet, you will need evidence from your pension provider of your current pension value and a forecast of your retirement income. 

You could also include other income from investments such as shares or property.

How do I better my chance of securing a mortgage as an older borrower?

The more complex your situation, the more important it is to get professional advice. It’s our job to work with you to explore all the options and find a solution that works for you. 

We ask you about your specific circumstances and what you want to achieve with your mortgage, and recommend the most suitable approach. We find appropriate mortgage deals, support you in applying for a mortgage and make sure you are fully confident in the product you’re buying.

Assured is authorised and regulated by the Financial Conduct Authority and listed on the Financial Services Register.