Being approved for a mortgage once you’re a little older can be more difficult. However this guide is to show you how you can still get accepted and move in to your dream home, or remortgage your current property to free up some equity. We cover a few aspects of mortgages for the over 50s, including getting a mortgage when you’re retired, if there are maximum ages for a mortgage, what types of mortgages could be open to you, and a quick how to guide.
Do mortgages have a maximum age?
There is no set top age that you can get a mortgage across the board. However, some lenders to have limits; which can apply to the age you take the mortgage out and the age the mortgage is due to end.
Let’s look at an example. If you’re 50 and the requirements by your lender are that you’ve paid it off by the age of 70, you have 20 years to pay it off. Therefore, you may have higher monthly repayments so you’d need to ensure that your income can cover it, and if you retire you won’t struggle to afford it.
If your income is large enough to cover the repayments easily, it will help your chances of getting approved for a mortgage. Additionally, a great credit history will help, like it does with any mortgage.
The general age range limits lenders apply are:
- Maximum age of 65 to 80 for taking out a mortgage
- Maximum age of 70 to 85 for when the mortgage term ends
Can you get a mortgage if you’re retired?
Retirement often means you don’t have a regular income from a salary resulting in a decrease in income. This does make it more difficult to get a mortgages as you’re a higher risk in being able to afford the repayments. Being retired doesn’t mean you can’t get a mortgage though. Some lenders will let you take a mortgage out after you have retired or if retirement age is during the repayment period. They would ask you to prove that you could cover the repayments easily from your pension. To help, ask your pension provider to inform you of your expected retirement income, current total pension value, and expected retirement date. It’s best to also provide a mortgage lender with any other investment types such as property or shares. There are several types of mortgage available to you if you’re retired. Most commonly they have fixed interest rates and offer rates tracking the Bank of England base rate. However there may be others available including:
How should you apply for a mortgage?
Here’s a brief step-by-step guide for starting the process to getting a mortgage if you’re older:
- Find mortgages which accept your age through comparison tools online
- Always check the maximum age for applicants
- Speak to a mortgage advisor as they may have great mortgages available through them
- Remember to look at mortgages specialising in older borrowers
- Pick the perfect mortgage for you