Mortgages for Older Borrowers

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If you’re over 50 and thinking about buying a property or remortgaging, it could prove more challenging to get a mortgage. We explore the options for achieving your property goals.

What is the age limit for getting a mortgage?

Many lenders set upper age limits for mortgage applicants. The reason is that mortgage loans are long term – often lasting 25 years or more. By setting a limit, the lender is ensuring that the debt is fully repaid by the time you are 70 or 75. 

Because of that, the age of 50 is a common limit for a 25 year mortgage. Every lender is different, though, and some don’t set upper age limits at all. 

Can I get a mortgage at 60?

It is certainly possible to get a mortgage (for a purchase or to remortgage) at 60, although it can depend on the type of mortgage and your specific circumstances. Lenders will want to confirm that you have sufficient income to meet the monthly repayments.

It may be easier to get a mortgage over 60 by:

  • Looking at a shorter mortgage term – say 10 or 15 years, to help you stay within the age limits. This will, of course, make your mortgage repayments considerably higher.
  • Finding a flexible lender – specialist lenders often lend to older people by considering your specific situation.
  • Exploring retirement interest-only mortgages – this is a special type of mortgage for older borrowers where you only pay the interest due each month. At the end of the term you need to repay the loan in full.

Putting down a large deposit – this reduces the risk to the lender and makes you a more appealing customer.

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

For any mortgage, a lender wants to make sure they are minimising their risks by taking you on as a customer. It is illegal to discriminate against you purely based on your age, however, so the lender will need to have good reason to decline an application from an older person.

You will need to prove that you have enough income to meet the monthly mortgage repayments, that you have a good credit record and sufficient deposit.

Can you get a mortgage after you retire?

You can take out a mortgage after you have retired, or take out a loan that will continue to be repaid in retirement. 

The lender will want to confirm that you have enough pension income to cover the repayments on the mortgage. If you haven’t retired yet, you will need to ask your pension provider to confirm your current pension pot value and expected retirement income.

It may also help to demonstrate other income from investments like shares or property.

What are the most suitable mortgages for older borrowers?

The right mortgage will depend on your specific situation and property plans – do you want to buy a new or additional property or just remortgage your current home? Speak to one of our mortgage brokers to get personal recommendations about how to meet your goals.  

For traditional borrowing, you can look at a standard repayment mortgage, or Retirement Interest Only (RIO) plans which will have lower monthly costs, but need full repayment at the end of the term. An option is selling the home after your death or on entering full time care.

How can Vivid Mortgages help you?

The team at Vivid Mortgages are experienced mortgage professionals, here to explore all the options and help you achieve your property goals. We help people in all kinds of situations, from First Time Buyers to those looking to move home or later in life.

We’ll ask you about your specific situation and property goals and then compare mortgage deals, interest rates and fees to recommend the most suitable approach. Our systems help us compare products from both well-known banks and building societies and specialist providers. We support you through applying for a mortgage and managing stamp duty and conveyancing, right through until completion.

Vivid Mortgages is an appointed representative of Quilter Mortgage Planning Limited which is authorised and regulated by the Financial Conduct Authority.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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