Older Borrower Mortgages
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How do I better my chance of securing a mortgage as an older borrower?
There are specific things to consider as an older borrower, but generally, it’s the same as it is for anyone getting a mortgage. Try to ensure that you’ve got a clean credit score, no late or missed payments.
Lenders don’t discriminate against older borrowers. Encompass the whole mortgage market, and if you have got issues with credit, there are specific lenders that can help, but it’s imperative that you speak to a broker and disclose it all.
With the prices of properties generally and people working to later ages, older borrowers are common these days.
Can you get a mortgage after you retire?
Absolutely. It differs from lender to lender, due to different criteria. There are definitely specific lenders that will consider lending to you and use pension income because pension income is obviously provable.
What is the age limit for getting a mortgage?
It varies from one lender to the next, but generally, most lenders will lend up to retirement age, around the age of seventy or seventy-five. There are a few who have no age limits. as long as you’re receiving your pension income and this can be confirmed.
Can I get a thirty year mortgage at age fifty-five?
This one might be relatively difficult unless you can prove accurately what your pension projection will be. If you’re in your early thirties or forties, it’s very difficult to prove to a lender what you’re going to receive in thirty years time, so it isn’t impossible. But they will require you to to prove it and it has to be cast iron proof of what that retirement income will be
Can I get a Lifetime Mortgage at sixty?
If you get a mortgage at sixty, depending on the term, you may very well be able to get a mortgage at sixty, if, for example, you’re going to use your earned income and have selected a retirement of seventy-five, you could do a fifteen-year mortgage.
Lifetime Mortgages are something slightly different, because if that particular lender knows your property value is going to go up, they may offer an Interest-only repayment vehicle, with the sale of the property repaying this mortgage. Lifetime Mortgages are less about the client and more about the particular property, but each individual circumstance would need to be taken into account and speak to different lenders.
Why can it be harder to get a mortgage when you are that bit older?
Generally speaking, it could be a bit more difficult based on affordability, as the loan that you’re looking to apply for will likely be taken over less years than a younger person. For example, if you’re applying for a £200,000 mortgage, but can only take it over ten years, obviously, the repayments are going to be a lot more than someone that can take that amount out over a thirty year period.
Lenders are going to take that into account, often meaning you’ll be able to borrow less because those monthly payments are going to be a lot larger.
Should you use Equity Release?
You should definitely speak to a Mortgage Advisor and Equity Release specialist if you’re considering this, to work out what would be the best route for you. Sometimes a mortgage might still be the best route, so speak to an Equity Release specialist.
Generally speaking, Equity Release is based on the property value, not the applicant’s income, whereas a mortgage is obviously based on both. You could get lost in all the information available very easily, so definitely speak to an adviser on that one in particular.
How many lenders will lend to older borrowers?
I can think of about five or six that we tend to use quite often that are very good for older applicants. There are some that have specific products for later life lending, such as a Retirement Interest-only mortgage. Whatever your age, they will do a forty-year term you would just be paying the minimum amount per month, on an Interest-only basis.
What types of mortgages are available to older borrowers?
The Fixed-rate mortgage is fairly standard and the majority of products available to older lenders will fall under a Fixed-rate mortgage. There are also likely to be Tracker-rates, Offset, Variable-rates and Discount-rates, as well as the Retirement Interest-only mortgages that were mentioned above.
Older borrowers may certainly find specific things are more difficult, but generally, they’re not out of the market. They’re very much involved and there’s no reason why they wouldn’t be able to get the standard products that everybody else can get.
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