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Yes, an older person can get a mortgage, though the process may differ slightly from that of younger applicants.
Many lenders now offer more flexibility regarding age, and it is possible to find mortgage products tailored to older individuals.
Whether you are in your 50s, 60s, or beyond, if you are wondering can an older person get a mortgage, the answer is often yes, with several mortgage options available to suit your needs.
Mortgages For Older People
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We can help with every kind of mortgage solution for our older customers, whether this be repayment, interest-only, lifetime mortgages, equity release, or home reversion plans.
Also, bridging loans can provide a short-term lending solution to those that want to move home without selling or anything more complicated.
Later Life Mortgages
In recent years, products like retirement interest-only (RIO) mortgages and lifetime mortgages have become more common, providing flexible repayment options.
These products are specifically designed to make it easier for older borrowers to get a mortgage.
For example, with an RIO mortgage, you only pay the interest on your loan, and the original balance is repaid when you sell the property, pass away, or move into long-term care.
Equity release solutions such as lifetime mortgages work well for older customers that are unable to commit to a regular monthly payment, interest will compound.
There is also a range of traditional mortgages on a repayment or interest-only basis that offer mortgage solutions until age 85+ where monthly payments can be made.
Older Person Mortgages We Can Help With
- Purchases for an older person.
- Remortgages for an older person.
- Equity release options such as lifetime mortgages.
- Problem solving such as short-term mortgages etc.
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Why Might an Older Person Need a Mortgage?
There are many reasons why someone in their later years might seek a mortgage. If you are an older person considering a mortgage, here are some of the common situations.
Paying off a Current Mortgage
The most popular reason for an older person wanting a new mortgage is to repay a current one that is ending soon.
Downsizing or Moving Home
As an older homeowner, you may want to downsize or move to a more suitable property, a mortgage can help facilitate that change.
Releasing Equity for Retirement
If you are considering releasing equity for retirement, products like equity release or retirement interest-only mortgages can provide the funds needed to support your lifestyle in later life either as a lump-sum, smaller chunks, or a mixture.
Equity release products include lifetime mortgages and home reversion plans.
Supporting Family Members
Older individuals often want to help family members financially such as children and grandchildren.
A mortgage can offer that financial flexibility without compromising your own retirement plans.
Paying Off Existing Debt
If you have outstanding financial commitments, you may ask can an older person get a mortgage to help manage or consolidate debt.
Remortgaging can reduce monthly payments and make managing debt more straightforward.
Debt consolidation is high-risk lending therefore if you are considering this, it is important to seek professional advice.
Home Improvements and Modifications
Many older homeowners use mortgages to fund essential renovations, allowing them to remain in their home comfortably for longer.
Anything else?
Often, later-life mortgage advice is not straightforward and there are many reasons such as separations and divorce or paying for care that money is required for.
It is always best to speak through your options with an independent mortgage broker.
Lending Criteria and Considerations
When considering a mortgage application for an older person, lenders will assess your financial situation carefully.
While income and affordability are key, for older applicants, lenders also look at retirement income.
Pensions, investments, and other sources of income will help determine how much you can borrow.
Age Limits and Repayment Terms
With traditional mortgages for older people, it’s important to understand that some lenders have age limits. These typically fall around 80 or 85, by which time the mortgage must be repaid.
However, some lenders are more flexible and may offer repayment terms that extend beyond these limits, especially with RIO or lifetime mortgages where there is no end date. With these products, your mortgage plus any interest owed will be repaid when you enter long term care or die.
Equity Release and Remortgaging
If you are an older homeowner who wants to release equity, there are either remortgage or equity release mortgage options available to you.
Your mortgage broker will recommend the best product based on your individual situation.
Equity release can be used to supplement your retirement income, fund home improvements or anything else as you wish.
Benefits of Speaking to a Mortgage Broker
Navigating later life mortgages can be complex, and you may still be wondering can an older person get a mortgage.
Speaking to a mortgage broker who specialises in later-life advice can provide clarity. They can assess your situation and help you find a product that suits your needs.
