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How to Get a Mortgage if You’re Over 50

Getting a mortgage when you’re over 50 might feel a little different compared to younger borrowers, but rest assured, it’s very possible.

With people living longer and staying financially active well into their later years, lenders have introduced a range of products tailored to older borrowers.

Whether you’re looking to buy a new home, remortgage, pay off debts, repay a current mortgage that is ending, or release equity for retirement, there are plenty of mortgage options available to suit your needs.

Mortgage Options for Over 50s

One of the key things to consider when applying for a mortgage over 50 is how your finances will look in retirement.

Many lenders are happy to offer mortgages to older borrowers, but they will want to see how you plan to manage repayments as you retire.

Here are some of the main mortgage products available to those over 50:

Traditional Repayment Mortgages

If you’re still working and have a regular income, a standard repayment mortgage is an option.

Some lenders offer terms extending up to age 80, or even 85, depending on your financial situation. These can be on a capital repayment, interest only, or part and part basis.

Retirement Interest-Only Mortgages (RIO)

Retirement interest only is a popular option for older borrowers who have a good income.

You only pay the interest on your loan each month, with the balance repaid when the property is sold, or when you pass away or move into long-term care.

This keeps monthly payments lower while still allowing you to own your home.

Lifetime Mortgages

Lifetime mortgages are a form of equity release and you maintain the ownership of your property. They allow you to borrow against the value of your home, with no monthly repayments required.

Instead, the loan is repaid from the sale of the property when you move into care or pass away. The funds’ release can be taken as a lump sum or in smaller chunks as and when required.

With a big enough deposit, it is also possible to purchase a new home with a lifetime mortgage.

Home Reversion Plans

A home reversion plan is the other form of equity release mortgage where you give up ownership of your home usually for a lump sum of cash to spend as you wish.

You will be able to live in your home until you die or enter long-term care with no rental payments.

Shorter-Term Mortgages

For those over 50, it’s common to see shorter-term mortgages of 10 to 20 years, rather than the typical 25-year term.

Shorter terms may have higher monthly payments, but they allow you to clear the debt faster and reduce overall interest costs.

Bridging Loans

Bridging loans play an important role for those over 50 who wish to chain break in a property transaction.

They provide a short-term finance solution that will allow you to buy a new property while giving you enough time to sell your current one.

What Lenders Consider When You’re Over 50

When applying for a mortgage after 50, lenders will focus on a few key areas such as your age, current and future income, health, and objectives. Here are some of the main considerations:

Income and Affordability

For traditional mortgages, lenders will want to make sure you can afford your mortgage both now and in retirement.

This means they will look closely at your current income, pension forecasts, and any other assets or savings you may have.

If your mortgage term extends beyond your expected retirement age, showing that you’ll have enough income in retirement is crucial.

An equity release mortgage product may be recommended if income is low and monthly payments are not affordable.

Retirement Plans

Lenders will ask about your retirement plans. If you’re close to retirement age, they will want to know if you can afford to continue making payments once you stop working.

Pension income, savings, or investments can help strengthen your application.

Age Limits

For traditional mortgages, many lenders have an upper age limit for when the mortgage must be fully repaid, typically around 80 to 85, though some extend to 90+.

If you’re over 50, you’ll want to check the lender’s specific age policies. Mortgages that run for a lifetime, or until you enter long-term care, are also available for the right applicants.

Equity

If you already own a home, the equity in your property could work in your favour. Having substantial equity can reduce the lender’s risk and help secure a favourable mortgage deal.

If you’re looking to purchase a new property then the bigger deposit you have available the better.

Term Length

Traditional mortgage terms for older borrowers are typically shorter, often 10 to 20 years.

This keeps monthly payments manageable and ensures the mortgage is repaid before the borrower’s later years.

For the right applicants, mortgages are available for your lifetime or you entering long-term care.

The Process of Getting a Mortgage Over 50

Speak to an Independent Mortgage Advisor

It’s a good idea to speak to an independent mortgage advisor who understands the needs of older borrowers and can explore all options.

They can help you find the right product and explain the options available, whether it’s a repayment mortgage, an interest-only option, or equity release.

Your advisor will also consider any means-tested benefits you receive and explore any grant options that might be available to you as part of the advice process.

Submit Your Application

When you apply, you’ll need to provide documents that show your income, savings, and pension details, as well as identification and proof of address.

Underwriting

The lender will perform checks on your application which will involve a survey to check the value and condition of your home.

Receive an Agreement in Principle

For a traditional mortgage, this is a statement from the lender confirming how much they’re willing to lend you based on your financial information. This process works differently with equity release mortgage products.

Final Approval and Completion

Once your application is reviewed and approved, the mortgage funds will be released upon completion of the purchase or remortgage.

By understanding the options available and what lenders are looking for, getting a mortgage over 50 can be a straightforward process.

Speaking to an independent mortgage broker can help you find the right deal and easily navigate the process.

Top 10 FAQs About Getting a Mortgage Over 50

1. Can I get a mortgage if I’m over 50?

Yes, many lenders offer mortgages to people over 50, but they will look closely at your income, retirement plans, and how long you intend to work.

2. Can I get a 25-year mortgage at 50?

While possible, most lenders may offer shorter terms like 20 or 25 years to ensure the loan is repaid before you retire or reach their upper age limit.

3. What’s the best mortgage option for someone over 50?

This depends on your financial situation. Retirement interest-only (RIO) mortgages and lifetime mortgages are popular choices, but if you’re still working, a standard repayment mortgage might suit you.

4. Do I need to provide proof of my pension income?

Yes, if your mortgage term extends into retirement, lenders will want to see proof of your pension and any other income sources to ensure you can afford the repayments.

5. What age do lenders stop giving mortgages?

Some lenders have an upper age limit of 70 to 75, but others extend this to 85 or 90. Products like RIO mortgages and lifetime mortgages have no end dates.

6. Can I get an interest-only mortgage after 50?

Yes, interest-only mortgages, particularly RIO mortgages, are designed for older borrowers. You only pay the interest each month, and the loan is repaid when the home is sold.

7. What if I still have an existing mortgage?

You can remortgage to a better rate or switch to a different product, such as a retirement interest-only mortgage, which may reduce your monthly payments.

8. How do lifetime mortgages work?

A lifetime mortgage allows you to borrow against the value of your home without making monthly repayments. The loan is repaid when the property is sold, typically when you move into care or pass away.

9. Is equity release a good idea for someone over 50?

Equity release can be a useful way to access the value of your home in later life, especially if you need extra funds for retirement. It’s important to seek advice to ensure it’s the right choice for you.

10. Can I get a mortgage if I’m already retired?

Yes, though lenders will want to see that you have a stable retirement income from pensions, savings, or other sources.

Retirement interest-only and lifetime mortgages are often more accessible for retired applicants.


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Author Image of Amy Davidson - Director of UK Moneyman Ltd.

About the Author

Amy Davidson

Director of UK Moneyman Ltd.

Since finishing a BA (Hons) Financial Services degree in Nottingham, Amy has worked in all aspects of financial services including banking, financial advice, and now mortgages. Amy co-founded UK Moneyman with Malcolm back in 2009 with a view to provide truly independent mortgage advice.

Utilising her financial services experience, Amy has a passion for content writing and works closely with the UK Moneyman team to educate customers searching online in all areas of mortgages. Alongside the content writing, Amy works with our customer care team taking incoming enquiries.

Outside of work, Amy enjoys family holidays, keeping fit, and catching up with friends.

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