Mortgages for the Elderly

Quick Links

The 3 Types of Mortgages For The Elderly

Bespoke Advice

Traditional mortgage lenders such as the ones on the high street will typically have an age limit for their mortgage loans. However, the good news is that there are many later-life lenders, offering lifetime or very long-term mortgages for the elderly.

Typically, elderly customers will contact us for mortgage advice for the following reasons:

• To purchase a new home.
• Downsizing.
• Mortgages with a family member.
• Pay off an existing mortgage.
• Repay debts using equity.
• Funding home improvements with equity.
• Equity release as a lump sum or smaller chunks to supplement income.
• Complicated situations.

Being an independent broker, specialising in mortgages for the elderly, we can usually help with a solution.

The 3 Types of Mortgages For The Elderly

There are 3 main types of mortgages for the elderly available in the UK, these are:

1. Traditional mortgages, with high-street lenders, typically run to age 70 to 85, however, there are more lenders entering the market offering longer-term solutions such as the possibility of taking out a 40-year mortgage at age 60.
2. Retirement interest-only mortgages, often called a 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, throughout retirement. These are assessed in a similar way to a traditional mortgage on affordability, credit score, and a minimum age of 55.
3. Equity release mortgages, there are two types of equity release mortgages available for the elderly in the UK, these are a lifetime mortgage and a home reversion plan.

Mortgages for Older Applicants

Our mortgage advisors can work out how much you are able to borrow and what products you qualify for.

Speak to an Advisor – It’s Free!

Lifetime mortgages for the elderly will ensure you and your partner have a right to reside in your home until the second one of you dies or enters long term care.

You’ll need a fair amount of equity if you are looking to release tax-free cash, or a large deposit if you are looking to buy a property with a lifetime mortgage. Monthly payments are optional and if made, can help keep the interest to a minimum.

Home reversion plan mortgages for the elderly are very rare in the UK and involve selling your property to a lender but maintaining the right to reside until you die or enter long-term care, this would apply to the second applicant if a joint application for peace of mind.

Bespoke Mortgages For The Elderly Advice

The above mortgage types should all be explored by your later-life mortgage broker to ensure that you are not paying more interest than you need to be.

Mistakes can be costly in this space and most mortgage brokers will not have the ability to compare all options for you in-house.

We offer a bespoke mortgages for the elderly service and advice team to find the most cost-effective solution for your needs, saving you both time and money.