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If you’re over 55 and wondering if you can still get a 25-year mortgage, the answer is yes!
As people live longer and work later in life, many mortgage lenders are offering more options for older borrowers.
So even if you’re planning for retirement or buying a new home, getting a long-term mortgage after 55 is possible.
Lenders are usually happy to offer repayment mortgages to those over 55, but they will check to make sure you can afford the payments, especially as you approach retirement.
This means they’ll look at your income from work, savings, pensions, and any investments to see if a long-term mortgage makes sense for you.
If repayment is not affordable or recommended then there are a range of interest only or part and part mortgage solutions available, these include regular mortgages, retirement interest only, and lifetime mortgage solutions.
There are many reasons why you might need a mortgage aged over 55. Some common ones include:
Whether you’re downsizing, relocating, or moving closer to family, you might need a mortgage to help pay for your new home. Even if you own your current home, the sale price may not cover the cost of a new property.
If you’re caught in a property chain that’s holding up your move, a mortgage can help. Chain breaking is when you buy your next home before selling your current one, so you’re not stuck waiting for other buyers. This gives you the freedom to move forward without delays, and a mortgage can help you bridge that gap.
If you’re going through a divorce or separation later in life, you may need to buy a new home or pay off a former partner. An over 55s mortgage can help spread the cost over time, making it easier to manage.
Many parents or grandparents use mortgages to help their children or grandchildren buy their first home. You might also act as a guarantor, helping a family member qualify for a mortgage with your support.
If you want to make changes to your home, such as making it more accessible or energy-efficient, a mortgage could help cover the costs of big renovations.
Some people use the value in their home to release money to enjoy in retirement. This is done through options that include lifetime mortgages and home reversion plans.
If you’re over 55 and applying for a traditional mortgage, lenders will likely have an upper-age limit.
This often falls between 80 and 85 years old.
So, the mortgage might need to end before you reach a certain age.
Lenders will also ask about your plans for retirement.
They’ll want to know how you’ll manage your payments once you stop working.
The good news is, if you have a pension or savings, this could show the lender that you’ll still be able to make payments.
Lifetime and retirement interest only mortgages have no end term date therefore they are assessed in a different way.
Our later-life mortgage experts will recommend the best product for your personal situation.
When you’re looking for a 25-year mortgage after 55, here are a few options to consider:
Many high street lenders offer long-term mortgages to older borrowers.
Some even allow terms that last until age 85 or beyond, and there are options to take out a 40-year mortgage in your 60s, depending on your financial situation.
A RIO mortgage lets you pay just the interest on your loan each month. The loan is repaid when you sell the property, move into long-term care, or pass away.
It can be a good option if you have a steady pension income and want lower monthly payments.
A lifetime mortgage, which is the most common equity release plan, can be used for a property purchase with a big enough deposit or to release the capital from your home.
Depending on your personal situation, a combination of the above may work best for your purchase or remortgage.
Our team of experienced later life mortgage specialists will be happy to help and advise.
Before committing to a 25-year mortgage that requires monthly payments after 55, think about how you’ll manage the payments in the years ahead.
It’s important to consider your future income, savings, and pension to make sure you can comfortably afford the mortgage.
Long-term mortgages can help you meet your financial goals, whether you’re buying a new home, helping family, or funding your retirement.
If payments are not or will not be affordable to you then there may be a better solution or products available to you that provide more flexibility, we can help with this.
If you’re interested in a 25-year mortgage after 55, there are many flexible options designed to meet the needs of older borrowers.
Speak to a specialist over 55s mortgage advisor to find out what’s available and to recommend the best solution for you.
We offer a free, no-obligation consultation for all customers to explain the process and answer all your questions.
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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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