Mortgages for Over 50s

It has been great to see so many lenders being innovative in the mortgages for over 50s space over the last few years. Brilliant new products are now available that are specifically aimed to help older borrowers.

No, it is not too late to buy a house over the age of 50. Many people continue to purchase homes well into their 50s, 60s, and even beyond that.

There are lots of mortgage options as above to clients over the age of 50 looking to buy a new property.  Many of our older clients choose to move in their 50s to be closer to families, grandchildren, their schools and separation/divorce.

It’s important to consider your personal financial situation and goals before making any decisions, but age alone is not a determining factor in whether you can purchase a home.

There is no specific age limit for getting a mortgage, however, which mortgage type will be most suitable for you will depend on your age, income, and affordability.

Purchase, remortgage and capital raising mortgages are available to clients over the age of 50.

Some mortgage types have end dates such as a capital repayment and interest only mortgage, other mortgages do not have end dates such as a retirement interest only mortgage and a lifetime mortgage.

Our mortgage broker team will recommend the best way forward for you based on your personal situation.

Yes, you can get a mortgage after you retire, we have a range of options for mortgages over the age of 60.

There are lots of retirement mortgage options available now to customers aged over 50 looking to either purchase a new home or remortgage.

Options of a debt consolidation mortgage are also available to our older clients to help clear credit cards and loans ahead of an income drop in retirement. Debt consolidation is a specialist area of lending and doing a debt consolidation mortgage without seeking experienced advice could put you in a worse financial situation.

Yes, you can get a buy to let mortgage if you’re aged over 50, but you’ll need to meet the mortgage lender’s eligibility criteria, which may include a minimum income requirement and a deposit of at least 25%.

If you’re an experienced landlord wanting to expand your portfolio, you’ll have more chance of qualifying for a mortgage than a first time buyer buy to let.

For a standard mortgage, the application process is generally the same for over 50s as it is for younger applicants, but mortgage lenders may take your age and retirement plans into account when assessing your application.

For a more specialist type such as a retirement interest only or equity release mortgage more underwriting will be required.

With a retirement interest only mortgage your new lender will require proof of affordability for both applicants and if the mortgage will be sustainable by the lowest earner. Good pension incomes are required here.

With an equity release mortgage product, your lender will require more detail about your property value and construction.

There’s nothing to worry about here as our team of mortgage case managers are highly experienced and will guide you through the whole process.

Getting a mortgage when you are aged over 50 doesn’t have to be difficult, however, it’s important to seek impartial independent mortgage advice to ensure you are getting the best product for your needs.

It can be difficult to get a traditional capital repayment mortgage over the age of 50 due to the affordability of size of the monthly payment you’ll need to pay. Basically, you’re running out of working years to repay the full loan plus interest back compared with a 30-year-old.

Mortgage lenders have recognised that there is a need for innovation in this area and have released lots of new products to help older clients with their mortgages over 50s needs.

The best mortgage for over 50s depends on your personal circumstances and financial goals. Some options to consider are a standard capital repayment mortgage or an interest-only mortgage deal.

Other alternatives can include retirement interest only (RIO) mortgages, term interest only (TIO) mortgages and equity release mortgages, which includes both a lifetime mortgage and home reversion plans.

Your dedicated later life mortgage advisor will take a look at your personal and financial situation, as well as your future goals, in order to best advise on which route would be most suitable for you.

The amount you can borrow over 50 will be dependent on various factors, such as your income, outgoings, credit score, and the value of the property you want to buy.

Also, the amount you can borrow on a mortgage will depend on which mortgage types are available to you.

Mortgage lenders typically use affordability assessments to determine how much they are willing to lend.

If you are aged 50+ and wanting to find out how much you can accurately borrow on a mortgage and how much this will cost, it’s best to speak with a dedicated mortgage broker who will be able to help.

Your age can affect your mortgage eligibility as some mortgage lenders may view older borrowers as higher risk and may be concerned about your ability to repay the loan if you retire before the mortgage is fully repaid.

That being said, so long as you are able to prove that you have a sufficient income, you should in theory still be able to take out a mortgage.

If you are unable to afford to make the full monthly repayments, then there are more specialist mortgage products we can recommend for you.

For a mortgage over 50, you will typically need to show your mortgage provider proof of income, such as payslips or pension statements, and demonstrate that you can afford the repayments.

Other documents such as your ID, proof of address and details of any current mortgage will be requested as part of the application process.

Equity release is a financial product that allows homeowners over 55 to access the equity in their property without having to sell it.

This can be achieved either through a lifetime mortgage or a home reversion plan.

UK Moneyman Limited and our later life mortgage advisors are voluntary registered members of the Equity Release Council, adhering to the standards they have set.

A lifetime mortgage is a type of equity release mortgage where you take out a loan secured against your home that is repaid when you die or sell your home.  A lifetime mortgage can be used to release equity from your current house, repay an existing mortgage, or purchase a new home.

Lifetime mortgages usually either come in the form of a lump sum lifetime mortgage or a drawdown lifetime mortgage.

A lump sum lifetime mortgage allows you to release your funds, tax-free, into a one-time lump sum. This allows you to retain complete ownership of your home, without the need to make monthly repayments.

A drawdown lifetime mortgage works similarly, but instead will allow you to draw additional equity from the property as and when you need it. This reduces the overall cost of your mortgage, as you are only charged interest on the amounts that are drawn out.

The qualifying criteria for each of these types of lifetime mortgage is the same.

With a lifetime mortgage there are lots of options such as the ability to make overpayments and contribute towards the monthly interest payments.

A home reversion plan is a type of equity release where you sell a portion of your home to a provider in exchange for a lump sum or regular payments.

You retain the right to live in the property until you die or move into long-term care.

There are two types of equity release mortgage available, a lifetime mortgage and a home reversion plan.  A lifetime mortgage is recommended 99% of the time.

If your interest only mortgage is ending and you’re over 50, if you wish to stay in the property, you may need to switch to a repayment mortgage or consider alternative options, such as equity release, via a lifetime mortgage or a home reversion plan.

When your interest only mortgage is ending soon, your lender will give you plenty of notice and start writing to you years ahead requesting the repayment of your loan.

You’ll also have the option to sell the property and downsize to consider.

A term interest only (TIO) mortgage is a type of mortgage where you only pay the interest on the loan for a fixed term, typically between 5 and 25 years, and then repay the full amount at the end of the term.

These kinds of mortgages are part of a retirement mortgage range that we have available.  It’s always best to speak with a later life mortgage advisor for help and a recommendation.

A retirement interest only (RIO) mortgage is a type of mortgage designed for older borrowers aged 55+ where you only pay the interest on the loan, and the full amount is repaid when you die or sell the property.

RIO mortgages can be used to purchase a new home or to refinance an existing mortgage.

Retirement interest only mortgages are more suited to either single of joint applicants that have good pension income and can afford to pay the interest on a mortgage for their lifetime.