Retirement Mortgages

No, it is not too late to buy a house when you are retired. Many people continue to purchase homes well into retirement, and even beyond that. Often, older clients choose to move home to be closer to family members or to downsize to a smaller property.

It’s important to consider your personal financial situation and goals before making any decisions, but age alone is not a determining factor in whether you can purchase a home.

Speaking to a mortgage broker is vital and could save you a lot of money in the long term. The retirement mortgage market is specialist and there are lots of considerations. Retirement mortgage options are not something that you could compare deals online etc, please seek reputable later life specialist advice.

There isn’t one, we have access to a full range of mortgage solutions from aged 18 to 100+. Your mortgage advisor will recommend the best product for you based on your age, income and objectives.

There are all kinds of mortgage available including fixed and variable interest rates.

Yes, you can get a mortgage after you retire, there are various retirement remortgage options available for you and which one your mortgage broker will recommend will depend on lots of factors.

Options such as whether you can afford or wish to make monthly payments, how much you are looking to borrow and your pension income will be discussed.

Yes, this is one of the most popular older clients contact us to become debt free in retirement. Often, they are having difficulty meeting the credit card and loan repayments from their pension income.

As above, what type of mortgage is most suitable will be recommended by your mortgage broker. This is also known as a debt consolidation mortgage, this type of mortgage is not without risk though as you’ll be taking unsecured credit and securing it on your home.

The risks will depend on which mortgage type is recommended by our team and all the risks associated with this will be discussed with you, so you fully understand any implications, including repossession.

Yes, you can get a if you’re over 60. Buy to let criteria is very different to a residential mortgage and how much you can borrow will be calculated using the rental income you’ll receive.

Often, clients choose to invest their tax-free pension lump sum into property with a view to supplement their pension income and to provide an asset to be passed on to their family in the long-term.

Yes and no, the mortgage process for a regular mortgage is different from the other types. Our expert mortgage broker team will help and guide you through the application process to ensure we have all the documents that are required.

You’ll still need to provide ID, document your pension income and provide details of any spouse pension if applicable.

It’s all based on affordability which is calculated using the number of years you have left at work. The difficulty will be lower if you have a great pension income and are looking to borrow a smaller amount.

Younger applicants can spread the mortgage amount over more years, often 30 to 40 years which makes the monthly payments more affordable. With retired applicants, often, a regular mortgage doesn’t fit affordability. This is where the other retirement mortgage options can be considered.

Please remember to use a dedicated later life specialist mortgage broker with the full range of lending solutions.

The best mortgage for pensioners depends on your personal circumstances and financial goals. Some options to consider include fixed-rate mortgages and variable-rate mortgages.

Other alternatives can include retirement interest only (RIO) mortgages, term interest only (TIO) mortgages and equity release, which includes both lifetime mortgages and home reversion plans.

Your dedicated later life mortgage advisor will take a look at your personal and financial situation, as well as your future goals, in order to best advise on which route would be most suitable for you.

Yes, you can get a mortgage if you’re self-employed and semi-retired, but you’ll need to provide evidence of your income and show that you can afford the repayments. Again, if you are part-retired and part-working, there may be alternative retirement mortgage products available to you.

Self-employed mortgage advice is specialist, along with the later life range therefore it’s always best to talk through your options with our team.

The amount you can borrow on a mortgage if I’m retired will be dependent on various factors, such as your income, outgoings, credit score, and the value of the property you want to buy.

Mortgage lenders typically use affordability assessments to determine how much they are willing to lend.

This is different with some of the retirement mortgage options above, so it’s always best to speak with a mortgage broker to find out an accurate how much you can borrow figure.

Your age can affect your mortgage eligibility as some mortgage lenders may view older borrowers as higher risk and may be concerned about your ability to repay the loan if you retire before the mortgage is fully repaid.

So long as you are able to prove that you have a sufficient income, you should in theory still be able to take out a mortgage.

The number of years for a mortgage into retirement will depend on various factors, such as your income, outgoings, credit score, and the property’s value.

Mortgage lenders typically use affordability assessments to determine the maximum term they are willing to lend. Other types of mortgages designed for retired applicants include lifetime mortgages with no end date.

There are two main products within the equity release range of mortgages, the first is a Lifetime Mortgage and the second is a Home Reversion Plan. A lifetime mortgage is the product that is the most popular in the equity release range.

Over the years, equity release has received lots of regulatory influence and innovation by mortgage lenders which has resulted in the creation of some product features in this space.

An equity release mortgage provides you with a lump sum (or smaller chunks) with no requirement to pay monthly payments. It can be used to release tax-free cash from your property for various reasons without the need to sell it.

Traditionally the interest on the capital rolls up and the plan is usually repaid on death or when the sole or second applicant goes into long term care.  Changes in the industry, and a demand for more flexibility, now mean that you can make penalty free payments on all lifetime mortgages (within lender limits – usually up to 10% of the amount borrowed can be paid each year before penalties apply). This means that, if you can afford to, you can pay the interest (and more) monthly, just like an interest only mortgage so that the amount you owe doesn’t increase over time.

We are proud to be registered members of the Equity Release Council, adhering to the standards they have set.

To understand the features and risks, ask for a personalised illustration. Equity Release may come in the form of a lifetime mortgage or home reversion plan.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

If your interest only mortgage is ending, you may need to switch to a repayment mortgage or consider alternative options, such as equity release, via a lifetime mortgage or a home reversion plan. There may be other product types available for you also such as a retirement mortgage.

A retirement interest-only mortgage, also known as a RIO, is an interest-only mortgage aimed at older borrowers who can afford to make interest payments per month.

Like a regular mortgage, with a RIO you’ll need to provide details of your income and prove to the lender that you are able to afford to make the interest-only payments per month. A RIO is available for both working and retired clients who are looking to remortgage or purchase a new home.

If you’re doing a RIO in joint names, the income will generally be assessed based on which of you would have the lower income if the other died to ensure that they can afford the mortgage on their own. A RIO mortgage doesn’t have an end date and the capital is repaid when the second applicant goes into long-term care or dies, usually from the sale of the home.

A term interest-only mortgage, also known as a TIO, works in a similar way to a RIO. A TIO is available to both retired and working applicants and can be used to remortgage or purchase a new home. You’ll pay interest-only payments per month.

Unlike a RIO, a TIO will have a set term of up to 30 years. At the end of the term, a TIO can then be repaid from the sale of the property or via the funds raised from a Lifetime Mortgage. A TIO is a great product that can be used to find the gap between a regular and a lifetime mortgage product to save interest rolling up.