Can a 60-Year-Old Get a Mortgage? 

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Why Might a 60-Year-Old Need a Mortgage?

Types of Mortgages Available for Over 60s

Factors Lenders Consider

Is It the Right Choice for You?

The idea of getting a mortgage at 60 might seem daunting, but it’s more common and achievable than you might think.

Whether you’re looking to downsize, buy a retirement property, or even purchase your first home, there are plenty of options available for those looking to get a mortgage over 60.

So, can a 60-year-old get a mortgage? Absolutely, for both purchases and remortgages, here’s how. 

Why Might a 60-Year-Old Need a Mortgage?

There are several reasons why someone in their 60s might consider taking out a mortgage, here are a few of the more popular ones: 

Downsizing

Many people choose to downsize as they approach retirement, moving to a smaller, more manageable home.

A mortgage can help facilitate this move, especially if your current property hasn’t yet been fully paid off, or if you need additional funds to purchase a new home that better suits your needs.

Repay a Mortgage

If you are coming to the end of your interest-only mortgage term an over 60s mortgage can help solve the problem of repaying this.

We can explore all options such as repayment, interest-only, with or without a term.

Buying a Retirement Property

Some people may want to buy a specific retirement property, such as a bungalow or a home closer to family.

A mortgage can provide the financial flexibility to make this purchase without using up all your savings or pension pot.

There are various shared-ownership properties for sale nowadays being marketed to the over 60s.

Home Improvements

Home renovations and improvements are popular as people start to consider retirement, examples include landscaped gardens, new kitchens and bathrooms, extensions or conversions.

With enough available equity, a mortgage for the over 60s will provide funding.

Right to Buy

We receive lots of enquiries from our more mature customers who have lived in their council houses for years and would now like to purchase them from the council using the right to buy scheme for security in retirement.

Equity Release for Financial Flexibility

If you’re looking to free up some cash from your property while continuing to live in it, a mortgage product like equity release or a lifetime mortgage might be the right choice.

This can provide funds for home improvements, travel, or to supplement your retirement income.

Helping Family Members

It’s not uncommon for people in their 60s to use a mortgage to help younger family members, such as children or grandchildren, with significant expenses like education costs or buying their first home

A mortgage can allow you to access the funds needed to support your family without depleting your savings.

Investment Purposes

Some people in their 60s look to invest in property to generate additional income in retirement. Buy to let mortgages, for example, can provide a steady stream of rental income, which can supplement your pension and other retirement income.

Paying Off Existing Debts

If you have existing debts, refinancing them into a mortgage might offer lower interest rates and more manageable payments. This can be a strategic way to consolidate debt and improve your financial situation.

Something Else

We find that situations often can be complicated and require specialist mortgage advice, examples include getting a mortgage to pay for care, separations and divorce.

Types of Mortgages Available for Over 60s

So, can a 60-year-old get a mortgage that meets their specific needs?

Yes, and there are several options available, and all can be used for either a purchase or remortgage: 

Standard Residential Mortgages

Many lenders offer standard residential mortgages to borrowers in their 60s, although the term might be shorter than for younger applicants. 

Retirement Interest-Only Mortgages (RIO)

Retirement interest-only mortgages are specifically designed for older borrowers.

With this type of mortgage, you only pay the interest each month, keeping monthly payments lower. The loan is repaid when you sell the house, move into long-term care, or pass away.

Equity Release

Equity release allows you to unlock some of the value tied up in your home without needing to move.

This can be an attractive option if you want to stay in your current home while accessing some of its value.

You can also use a lifetime mortgage, the most popular type of equity release, to purchase a new home with enough deposit available.

Factors Lenders Consider

When assessing a mortgage application from someone in their 60s, lenders look at a range of factors: 

Affordability

Lenders will assess your income, including pensions, savings, and any other sources of income, to ensure you can afford the mortgage payments.

They will also consider your outgoings to determine what you can comfortably afford.

Loan Term

The term of the mortgage is often shorter for older borrowers, typically matching the lender’s upper age limit, which can range from 70 to 85 years old.

This might mean higher monthly payments, so it’s important to choose a term that fits your financial situation.

Health and Life Expectancy

Some lenders may consider your health and life expectancy, especially with longer-term or lifetime mortgages. While this isn’t a factor for all lenders, it can influence the terms you’re offered.

Property type

Your lender, especially with lifetime mortgages, will want to ensure your home is in good condition, structurally sound and in a good state of repair, standard construction, and its valuation and resale ability. 

Is It the Right Choice for You?

So, can a 60-year-old get a mortgage that supports their financial goals? Absolutely. Getting a mortgage at 60 is entirely possible, but it’s important to consider your long-term financial goals and how taking on a mortgage fits into those plans.

Whether you’re looking to downsize, release equity, or purchase a new home, understanding the options available and the factors lenders consider will help you make an informed decision. 

With careful planning and the right advice, you can secure a mortgage that provides stability and supports your financial well-being in your later years.