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High street mortgage lenders will usually have an upper-age limit for their mortgages within their lending criteria.
However, if you are looking for mortgages for older people, there are many later-life lenders, offering lifetime or very long-term loans for almost all situations. This provides peace of mind for our older customers that their home is safe throughout retirement.
Here are the main enquiries we receive for mortgages for older people:
Being an independent broker, specialising in mortgages for older people, we will listen to your personal situation and understand your wishes to recommend the best, most cost-effective way forward.
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In the UK, there are 3 main types of mortgages for older people available, these can all be used to purchase a new property, repay an existing mortgage, or release equity. Here is some further information on your options:
Traditional mortgages for older people are available via high-street lenders. These typically run to age 70 to 85, however, there are more lenders entering the market offering longer-term solutions such as the ability to take out a 40-year mortgage at age 60.
Retirement interest-only mortgages, often called an RIO (Retirement Interest Only) mortgage, run for your lifetime or until you, or the second applicant if a joint application enters long-term care.
These work well when there is a good income available, from both applicants if joint, from pensions and other sources. RIOs are assessed in a similar way to traditional mortgages on affordability and credit scoring, and the minimum age for one is 55.
Equity release mortgages, there are two types of equity release mortgages available for older people in the UK, these are a lifetime mortgage, which is the most used, and home reversion plans.
Lifetime mortgages for older people will ensure you and your partner have a right to live in your property until the second one of you dies or enters a care home long term.
You will require a fair amount of equity if you are looking to release tax-free cash, or a large deposit if you are looking to purchase a new property using a lifetime mortgage solution. The monthly payments are optional and if affordable, can help keep the interest costs to a minimum and help you keep a bigger percentage of equity over the longer term.
Home reversion plan mortgages for older people are rare and involve selling your property to a lender but maintaining the right to live in your home until your death or you are entering long-term care, this would apply to the second applicant if a joint application.
Yes, older people can still qualify for a mortgage.
While some lenders may have age limits, many offer mortgages for older people specifically designed to meet their needs. Lenders typically consider your retirement income, savings, and other assets to determine your eligibility.
Older borrowers have access to various mortgages for older people, including traditional repayment mortgages, interest-only mortgages, retirement interest-only mortgages (RIOs), and equity release products like lifetime mortgages.
The right choice depends on your financial situation and retirement goals.
Many lenders set an upper age limit for when mortgages for older people must be fully repaid, often around 75 to 85 years old.
However, some lenders offer more flexible terms, especially with retirement-specific mortgages, where the loan is repaid from the sale of the property after the borrower passes away or moves into long-term care.
Yes, lenders typically consider your pension income when assessing your ability to repay a mortgage.
This is especially true for mortgages for older people, where the lender may also consider state pensions, workplace or private pensions, and other regular income sources such as investments or rental income.
A retirement interest-only mortgage is a type of mortgage for older people designed to help them manage their finances more comfortably.
It allows borrowers to pay only the interest on the loan each month, with the principal repaid when the property is sold, usually after the borrower passes away or moves into care.
This can help keep monthly payments low while allowing the borrower to remain in their home.
Equity release is a financial product that enables older people to unlock the value tied up in their home.
Mortgages for older people like lifetime mortgages are a popular form of equity release, allowing you to borrow against your home’s value while continuing to live in it.
The loan and interest are repaid when the property is sold, providing a tax-free lump sum or regular payments to supplement retirement income.
With a big enough deposit, it is also possible to buy a new home with a lifetime mortgage.
Yes, there are risks involved with mortgages for older people, such as the potential impact on your estate and inheritance.
Changes in income during retirement can also make repayments challenging, particularly if your financial situation becomes less stable.
With equity release products, the interest can compound over time, reducing the equity in your home significantly.
Yes, a remortgage is an option for older people who want to secure a better interest rate, release equity, or switch to a mortgage product that better suits their current needs.
Mortgages for older people that involve remortgaging should be carefully considered, as it’s important to weigh the benefits against any potential costs or fees associated with the process.
Popular reasons to remortgage include capital raising, home improvements, and a debt-consolidation remortgage.
Taking out a mortgage, particularly one of the mortgages for older people like equity release, can reduce the value of your property.
The loan amount, along with accrued interest, is typically repaid from the sale of your home, which may diminish the inheritance you leave behind.
It’s important to consider this and discuss it with your family if inheritance planning is a priority.
Interest-only lifetime mortgages are also available if making a monthly payment is affordable, this will stop the roll of up interest and maximise inheritance.
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Absolutely. Given the complexities of mortgages for older people, seeking professional financial advice is crucial.
An independent mortgage advisor can provide tailored guidance, helping you understand your options and choose a mortgage that aligns with your financial situation and long-term goals.
This ensures that you make an informed decision that supports your financial health in retirement.
It is important to explore all of your options when trying to get a mortgage as an older applicant.
Taking out the wrong kind of product in this market can be costly, so it is always recommended that you speak with an independent mortgage broker.
At UK Moneyman, we offer transparent, personalised advice tailored to your unique situation.
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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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