Mortgages for over 60s

If you're aged 60 or over and looking to borrow later in life, there are a range of mortgage options available to suit your needs.

From lifetime mortgages that let you access tax-free cash without monthly repayments, to retirement interest-only mortgages and home reversion plans, there are flexible solutions depending on your circumstances.

These options can help you boost your retirement income, support family, or fund home improvements—but they also come with important considerations, such as impacts on inheritance and benefits.

Speaking to a qualified mortgage advisor is essential to find the right path for you

It is possible to get a mortgage when you’re over 60, but it might be more difficult than it is for younger homebuyers, and you’ll have fewer products to choose from.

The main reason for this is that lenders become concerned about your ability to repay your loan as you approach retirement.Whether or not you can get a mortgage when you’re over 60 will also depend on your financial situation and the reason you want to borrow.

If you want to remortgage to release equity from your existing property, equity release products are available that can help you do that.

Additionally, if you have an existing mortgage, remortgaging after the initial discount period or term has expired can be a viable option, especially considering the stability of pension income.

However, your options are limited if you want to buy a new residential property with a traditional mortgage. Most lenders set an age limit on who they’re willing to lend to, which can be as low as 65, making getting a mortgage for over 60s difficult.

Your ability to get a mortgage for older people will depend on what you want the mortgage for. If you want to release equity, you should be able to do this as long as you have money tied up in your property to release.If you want a new mortgage to buy a property or to remortgage to a new deal, it can be difficult but not impossible. Here’s what you can do to improve your chances:

• Boost your affordability: Show lenders you can afford to repay the mortgage by providing pension income projections if you’re going to retire during the term. Try to clear any debts you have to reduce your outgoings, as this will improve your affordability.

• Check your credit score: The lender will perform a hard check on your credit record as part of the application process. A good score will give you a better chance of being accepted, so check your score before you apply and take steps to improve it before you apply.

• Apply for a short term: Reducing the term over which you repay the mortgage will help your chances of getting accepted, but be aware that this will mean your monthly repayments will be higher. You’ll pay off the loan sooner and potentially pay less interest overall.

• Put down a bigger deposit: Putting down a larger deposit reduces the risk for the lender because it means you own more equity in the property, improving your chances.

Your ability to get a mortgage for older people will depend on what you want the mortgage for. If you want to release equity, you should be able to do this as long as you have money tied up in your property to release.

If you want a new mortgage to buy a property or to remortgage to a new deal, it can be difficult but not impossible. Here’s what you can do to improve your chances:

• Boost your affordability: Show lenders you can afford to repay the mortgage by providing pension projections if you’re going to retire during the term. Try to clear any debts you have to reduce your outgoings, as this will improve your affordability.

• Check your credit score: The lender will perform a hard check on your credit record as part of the application process. A good score will give you a better chance of being accepted, so check your score before you apply and take steps to improve it before you apply.

• Apply for a short term: Reducing the term over which you repay the mortgage will help your chances of getting accepted. Be aware that this will mean your repayments each month will be higher, but you’ll pay off the loan sooner and potentially pay less interest overall.

• Put down a bigger deposit: Putting down a larger deposit reduces the risk for the lender because it means you own more equity in the property, improving your chances.

Improving chances of approval

To improve their chances of getting a mortgage, older borrowers can take several steps. These may include checking their credit history, paying off debts, and gathering all the necessary documentation, such as proof of income and identification.

Borrowers can also consider working with a mortgage broker, who can help them navigate the mortgage market and find the best deal for their needs. Additionally, borrowers can consider a guarantor mortgage, which can provide an added layer of security for the lender.

By taking these steps, older borrowers can enhance their eligibility and secure a mortgage that meets their financial needs.

When it comes to getting a mortgage as an older borrower, there are several eligibility criteria that lenders will consider. These may include the borrower’s age, income, credit history, and the value of the property. Lenders may also have maximum age limits, which can range from 65 to 80 years old, depending on the lender and the type of mortgage.

In addition, lenders may require borrowers to have a minimum income, which can come from a variety of sources, including pensions, investments, and rental income. Ensuring you meet these criteria can significantly improve your chances of securing a mortgage.

There is no set legal limit on the maximum age to apply for a mortgage. However, most lenders do set upper age limits as part of their lending criteria, for example:

• Maximum age to take out a mortgage: 65 to 80

• Maximum age when the mortgage ends: 70 to 90

That means that, even if you are young enough to take out a mortgage, you may have to agree to a shorter term to ensure you’re below the maximum age limit when the term ends.

Some lenders will set limits for both, but some don’t set any age limits at all. You should speak to a broker who can help you find lenders with age limits that work for you.