Getting a mortgage over 50
In order to take out a mortgage, you will need to prove that you have sufficient income to repay your borrowing. In your 50s, you are likely to still be working, in which case proving your income shouldn’t be a problem. If you’re no longer working, mortgage providers will usually to want to see evidence of regular income from pensions, investments and insurance policies when you apply.
If you’re concerned that your income might not be sufficient, you may be able to use a guarantor, who will agree to cover your repayments if you become unable to do so. They need to demonstrate that they could afford to take on your mortgage payments in addition to their existing financial commitments.
Whatever your age, mortgage lenders will want you to fulfil certain criteria before they approve you for a mortgage. To maximise your chances of getting a mortgage over 50, you may want to consider the following points:
Think about whether you have sufficient income to borrow the amount you want
– this applies whether you are still working or have retired
Consider your existing debts and outgoings – do you have credit cards or loans to pay off?
Check your credit rating – do you have a clean credit history, with no outstanding payments or country court judgments against your name?
How much will a mortgage for over 50s cost?
As a prospective borrower in their 50s, you are likely to be able to find a greater variety of mortgage deals than those available for older individuals in their 60s and beyond. There are various interest rate options available, including:
Fixed rate mortgage - your interest payments are fixed for a set period of time (usually several years) after which you will be moved on to another rate
Standard variable rate mortgage - your interest will vary with your lender's mortgage rate
Tracker mortgage - your interest rate will move up or down by tracking an external rate, such as the such as the Bank of England Base Rate
Equity release – If you own your current home and are struggling to find a mortgage, equity release mortgages may be an option. Equity release mortgages differ from standard repayment mortgages and are not suitable for everyone. However, in certain circumstances, they may be an appropriate option. You will need to seek specialist independent advice if you are considering an equity release plan.