Mortgage for over 60s in the UK

Getting a mortgage approved when you are over 60 can be a challenge, but it’s not impossible. With the right advice and research, you can find lenders that will offer competitive rates for older borrowers.

There are a few factors that lenders consider when assessing mortgage applications from those who are over 60. Your income is one of the most important considerations, as your lender needs to know if you can afford the monthly repayments. Your credit score is also important, and you may need to provide references from employers or other financial institutions. You should also be prepared to answer questions about your retirement plans, such as whether you plan to work past retirement age or if you have a pension in place.

When looking for a mortgage, it’s important to compare different lenders and their offers. Some lenders may offer special deals for over 60s, so it’s worth speaking to your bank or a mortgage broker to find out what’s available. You should also consider the type of mortgage product you need, such as an interest-only loan or a fixed-rate mortgage.

Post Topics- 

Challenges for getting a mortgage after 60 years of age

So, can I get an over 60s mortgage?

What do I need to consider when applying for a mortgage when over 60?

Latest updates from Nationwide for mortgages for older people

What are other borrowing options for over 60s?

Pros and Cons of Getting a Mortgage for Over 60s

Next steps

Frequently Asked Questions About Mortgages for Over 60s

Challenges for getting a mortgage after 60 years of age

From the mortgage lender’s point of view, the reasoning may be understandable. Mortgages are designed to be repayable over many years – 20, 25 or even 30 years, let’s say. For anyone taking on a mortgage when they are aged 60 or over, therefore, they are likely to be well over 80 years old before the mortgage reaches full term.

Along with all the usual calculations based on your current income, expenditure, credit record, and loan-to-value (LTV) ratios, therefore, any lender may also need to start looking at your income during retirement when determining the affordability of any loan – in other words, what your pension is likely to be worth and the affordability of the mortgage repayments.

Against those difficulties and the natural wariness of mortgage lenders, however, it must also be recognised that the population is ageing and that we are all living longer lives. The Guardian newspaper on the 25^th of September 2019, for instance, pointed out that the 13,170 centenarians alive today is a figure 73% bigger than in 2002 – the number of people in the UK older than 105 has doubled since 2002.

Looking to the future, in a posting on the 16^th of April 2019, the Money Saving Expert reported that the number of over-65-year-olds today is around 12 million but is forecast to top 17 million by the year 2034.

So, can I get an over 60s mortgage?

So, what are the prospects of mortgages for older borrowers? Can you get an over 60 mortgage?

The mortgage industry also lives in the real world in which people are living longer, remaining economically active for longer, and eager to continue to manage their financial affairs for longer, too.

As a result, there is a growing number of mortgage options among mortgage lenders who have removed the maximum age limit and/or have increased their upper lending limits to people over the age of 80, or even 85.

Our answer to the question “Can I get a mortgage over 60s” is Yes, you can get a mortgage over this age too. However, When looking for a mortgage, it’s important to do your research and compare lenders. Some lenders may offer special deals for over 60s, so it’s worth speaking to your bank or a mortgage broker to find out what’s available. You should also consider the type of mortgage product you need, such as an interest-only loan or a fixed-rate mortgage.

What do I need to consider when applying for a mortgage when over 60?

Whatever your age when you apply for a mortgage, the lender has one thing in mind, and that is the recovery, with interest, of the advanced loan. The principal measure of that goal is the affordability of the loan to the borrower.

When you are over 60, any mortgage lender is going to be just as interested in your income. The added dimension, of course, is your income during retirement.

Suppose you have delayed your retirement date because you need to keep working to maintain your income. In that case, the lender will be concerned about your physical ability to continue working and earning. If retirement is still some time away, it may also be difficult to estimate your income upon your retirement.

If you have already retired, of course, the retirement income from your pension and other savings or investments is likely to be well established.

The Nationwide Building Society reminds the over-65s that their credit history is also going to be a factor in determining whether a mortgage application is successful – just as it would for any other applicant.

The stress tests applied to applications from retired people may also differ slightly from those for other applicants. The older you are, for example, the more likely the lender will want to know whether your spouse or other beneficiaries of your estate will be capable of maintaining the mortgage repayments if you die before the end of the mortgage term.

It is also important you are confident you will be able to afford the monthly mortgage payments as well as are paying what you consider to be an attractive mortgage interest rate over the repayment term. Your mortgage broker will be able to assist you with this.

Latest updates from Nationwide for mortgages for older people

Nationwide Building Society has become the first major lender on the high street to offer a comprehensive package of mortgage options and advice for older borrowers. The move is designed to support those in and approaching retirement and to address the needs of an ageing population.

The new suite of products includes a Retirement Capital and Interest (RC&I) mortgage, a Retirement Interest Only (RIO) mortgage, and a Nationwide Lifetime Mortgage. These products are available to Nationwide mortgage members over the age of 55, and there are no product, valuation, or advice fees.

The RC&I mortgage is a standard capital and interest repayment mortgage, while the RIO mortgage is an interest-only mortgage. The Lifetime Mortgage is an equity-release mortgage, which means that borrowers can release a percentage of the value of their home without having to sell it.

The new products offer borrowers a variety of options to choose from, depending on their individual needs and circumstances. For example, borrowers who are looking to release some of the equityThe difference between the value of the property and the amo... in their home to supplement their retirement income may choose the Lifetime Mortgage. Borrowers who are looking to make home improvements or pay off debts may choose the RC&I or RIO mortgage.

The launch of Nationwide’s new later-life mortgage lending options is a welcome development for older borrowers. It provides them with more choice and flexibility, and it shows that Nationwide is committed to supporting the needs of this growing demographic.

What are other borrowing options for over 60s?

In addition to checking out the feasibility of a regular or lifetime mortgage, you might also want to consider other means of access to finance once you reach 60 years of age:

Retirement interest-only (ROI) mortgages

• this is another type of financing option, reserved for over-55 homeowners who want to release some equity from their house or find the funds to repay the capital on a previous interest-only mortgage without having to downsize or make an equity release arrangement;

Equity release mortgage

• equity release also allows you to unlock the capital tied up in your home, and you don’t even have to immediately repay the interest on what is a lifetime mortgage – interest accumulates until your home is sold upon your death or when you move into long-term care when the capital advance is also repaid;

Offset mortgages

• if you are looking to reduce the cost of monthly mortgage repayments, you might also want to consider an offset mortgageA mortgage where the borrower's savings are offset against t..., where the balance in an associated savings account offsets your outstanding mortgage balance, thereby reducing the interest payable.

Pros and Cons of Getting a Mortgage for Over 60s

Advantages of getting a mortgage

• Can help fund a new home or release equity from an existing property
• May offer lower interest rates compared to other forms of borrowing
• Can be used to help children or grandchildren get on the property ladder

Disadvantages of getting a mortgage

• It may require regular repayments, which can be difficult to manage on a fixed-income
• May require the borrower to put their property at risk if they are unable to make the payments
• It may affect eligibility for certain benefits or grants

Next steps

For further advice on applying for a mortgage once you reach or are near retirement – or indeed, for guidance on alternative sources of borrowing and selecting the most appropriate mortgage product for you – you might want to consult your independent mortgage adviser.

Frequently Asked Questions About Mortgages for Over 60s

Can I get a mortgage if I’m over 60 and retired?

Yes, it is possible to get a mortgage if you’re over 60 and retired. Lenders will assess your retirement income and pension to determine affordability.

What is the maximum age for getting a mortgage?

The maximum age for getting a mortgage varies between lenders, but some may have age restrictions of 75 or 80.

Can I get a mortgage with bad credit?

It may be more difficult to get a mortgage with bad credit, but it is still possible. Borrowers may be offered higher interest rates or may need to provide a larger deposit.

How much can I borrow for a mortgage?

The amount that can be borrowed for a mortgage depends on the borrower’s income, expenses, and credit score. Lenders will assess affordability before offering a mortgage.