Mortgages for Over 70s

Yes, interest-only mortgages are available for the over 70s. Interest-only can be a much more cost-effective option for those aged over 70.

There are 3 options for an interest-only mortgage over the age of 70, all can be used for either a purchase, releasing equity, or remortgage purposes, these are:

• Traditional interest-only mortgages for over 70s, these are usually a helpful solution if you have good income, enough equity, and a repayment method in place such as from the sale of a property or encashment of an investment. Part and part mortgages can work well for the right individual also, these are a mixture between capital repayment and interest only.
• Retirement interest-only mortgages for over 70s, (RIOs), unlike a traditional interest-only mortgage, these run for life, and are an innovative and great solution for our more mature customers. RIOs work well when there is good pension income available.
• Interest-only lifetime mortgages for the over 70s, this is a form of equity release and should only be used if you do not qualify for the other options above. An interest-only lifetime mortgage can be used to purchase a new home, repay an existing mortgage, or release equity either as a lump sum or smaller chunks to top-up your pension income. No monthly payments are required and are optional.

Our experienced mortgages for over 70s team will recommend the best way forward for you based on your situation and personal objectives.

Yes, buy to let mortgages for the over 70s are available. Buy to let lending is more underwritten around the rent you will receive and your assets rather than on income and your age.

You will stand a better chance of getting a buy to let mortgage if you are an experienced landlord and have a large deposit available to put down as a deposit, this is then less risk to the lender.

Lifetime mortgages for the over 70s are the most popular type of equity release. You can purchase a new home, repay an existing mortgage, or release equity with a lifetime mortgage.

With a lifetime mortgage for the over 70s, you will retain full ownership of your home and have the right to live there until you die or go into long term care.

Monthly payments are optional if no payment is made the interest will compound and roll up quickly, you will be paying interest on your interest, and then interest on your interest on your interest etc. If you have enough income to meet the monthly interest payment, then the loan amount will stay the same.

A lifetime mortgage for the over 70s allows you to release equity from your home, this can then be used as you wish for a large purchase. Alternatively, if you require smaller chunks of money to top up your pension, that is fine also, this is called a drawdown lifetime mortgage.

There are more cost-effective products available to the over 70s, therefore, it is important to seek independent mortgage advice, this could potentially save you thousands of pounds as mistakes can be costly.

There are lots of mortgage lenders for the over 70s, however, depending on your situation, criteria could cause an issue.

We work with all the main high street lenders such as Halifax, NatWest, RBS, Barclays, Santander, Leeds, Lloyds, Nationwide, TSB, etc. We also work with a considerable number more specialist later life lenders that have been more innovative in the mortgages for over 70s space.

It is always best to utilise the services of an experienced age 70+ mortgage broker as it is a complicated subject, and mistakes can be costly.

Yes, there are lots of lenders that offer mortgages for older people. Whether you are looking to buy a new home, discuss your remortgage options, release equity for one reason or another, or something more complex there will be a mortgage option for you.

High street mortgage lender will typically have an age limit of between 70 and 85, however, there are longer-term mortgage lenders available for older people along with lifetime mortgages.

With mortgages for older people, depending on which mortgage type would be best for you, your lender may be interested in your income in retirement such as your pension and any income sources you have. They do this to ensure the loan is affordable.

With lifetime mortgages for older people, your lender will be interested more in the property construction and condition to see if it is worth what you say and if they can foresee any future problems with resale ability.

Yes, there are 4 main mortgage types for the elderly, which one will be most suitable for you will depend on what you are looking to do and your personal situation. Nowadays, lenders are being innovative in the mortgages for over 70s space, therefore, more solutions are becoming available.

The 4 main mortgage types for the elderly are:

• Traditional mortgages, interest-only, capital repayment, or part and part options are available. These run for a set number of years and are underwritten based on your income and affordability. These can be used to purchase a new home, remortgage, or release equity.
• Retirement interest only mortgages (RIOs), these run for your lifetime and a monthly payment of interest will be required. These also can be used for a purchase, remortgage, or capital raising. RIOs are assessed on income, therefore, they are a helpful solution for those with good private pensions.
• Lifetime mortgages, these are the most popular form of equity release, and they can be used to purchase a new property, repay an existing mortgage, or release equity. Monthly payments are optional meaning they are a helpful solution to equity rich, income poor customers.
• Home reversion plans, these are the least popular form of equity release mortgage for the elderly. With a home reversion plan you will sell your property and keep the right to live there until you die or enter long term care, they are a high-risk product. These plans work well when there is no family to leave an asset to in your will.

It is important to seek independent mortgage advice for the elderly so that your broker can consider all these options to recommend the best solution for you.

Yes, if you have enough equity available, you may be able to qualify for a homeowner loan, often called a secured loan mortgage.

Older people consider homeowner loans for the following reasons:

• Repay debts to decrease outgoings in retirement.
• Home improvements such as an extension, adding a new room, or renovation project.
• Anything else?

With homeowner loans for the elderly, your mortgage broker will also consider any other lending products that may be more suitable for you, such as a further advance mortgage from your existing lender.

It is important to consider that if you are repaying currently unsecured debts, such as credit cards and personal loans, and then securing them on your home via a homeowner loan you are putting your home at risk of repossession if you fail to meet the repayments.

Yes, there are 4 main mortgage types for the elderly, which one will be most suitable for you will depend on what you are looking to do and your personal situation.

The 4 main mortgage types for the elderly are:

• Traditional mortgages, interest-only, capital repayment, or part and part options are available. These run for a set number of years and are underwritten based on your income and affordability. These can be used to purchase a new home, remortgage, or release equity.
• Retirement interest only mortgages (RIOs), these run for your lifetime and a monthly payment of interest will be required. These also can be used for a purchase, remortgage, or capital raising. RIOs are assessed on income, therefore, they are a helpful solution for those with good private pensions.
• Lifetime mortgages, these are the most popular form of equity release, and they can be used to purchase a new property, repay an existing mortgage, or release equity. Monthly payments are optional meaning they are a helpful solution to equity rich, income poor customers.
• Home reversion plans, these are the least popular form of equity release mortgage for the elderly. With a home reversion plan you will sell your property and keep the right to live there until you die or enter long term care, they are a high-risk product. These plans work well when there is no family to leave an asset to in your will.

It is important to seek independent mortgage advice for the elderly so that your broker can consider all these options to recommend the best solution for you, saving you both time and money.

A later life mortgage is designed for those over 50, 60, and 70 to either purchase a new home, remortgage, repay an existing mortgage, or release equity for one reason or another.

A later life mortgage advisor will answer all your questions, listen to your personal situation, and recommend the best way forward for you.

• Mortgages for over 50s
• Mortgages for over 60s
• Mortgages for over 70s

There is no age limit with some mortgage products, however, with traditional products the upper age limit can be from age 70 to 85.

The products that do not do not have an age limit are:

• Certain traditional mortgage lenders will let you do a 40-year term at the age of 60 taking you to age 100.
• Retirement interest only mortgages, these run for your lifetime.
• Lifetime mortgages, these also run until you die or go into long term care.
• Home reversion plans, you sell your property in exchange for a cash lump sum and keep the right to live in your property until you enter long-term care or die.

For advice on mortgages for the over 70s, please get in touch for a free, no-obligation consultation. We will answer your questions and recommend the best way forward for you.