Check repayment age limits
The upper age limit for new mortgage applicants tends to be between 65 and 70, depending on the mortgage provider. Check if your mortgage provider specifies a repayment age – many will ask for the mortgage to be repaid in full by the time you reach a certain birthday.
Proving your income over 65
In order to take out a mortgage, you will need to prove that you have sufficient income to repay your borrowing – this could come from your pension and other savings, or your salary if you are still working. 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 65, 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?
Look out for specialist over 65s mortgage providers
There are some mortgages available, mainly through specialist mortgage brokers, which are specifically designed with older home buyers in mind. If you are over 65 and looking to get a mortgage, it may be worth looking into specialist mortgage brokers in order to get the best deal for your circumstances.
How is an over 65s mortgage repaid?
There are various interest rate options available to over 65s who want to repay their mortgage in a way that suits them, 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 are retired, 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.