Mortgages for over 60s

If you require help on your mortgage options use our impartial mortgage advice service or click here if you are 60+ looking for options for borrowing in retirement.

Mortgages for Over 60s

Historically mortgage lenders have been reluctant to offer good mortgage deals to over 60s, as they are seen to represent a greater risk of non-repayment due to factors such as age, health and potential changes in income.

The good news is that since 2018 options for borrowing in retirement have increased significantly with many lenders offering retirement interest only mortgage products.

The issue mortgage lenders have isn’t so much the borrower’s age when they take out a mortgage (although you generally have to be at least 18), but the age they will be when it’s paid off at the end of the term.

Many UK lenders state that the mortgage must be paid off by the time the borrower reaches 75, but almost all include a clause saying the mortgage must be paid off by retirement – which lenders generally view as at age 65 – unless the borrower can prove their retirement income. Since 2018 many lenders are now offering products that have maximum ages up to 99.

Mortgages In Retirement Service

• Borrowing options from age 55 to 99
• Independent advice on your mortgage options
• Interest only options
• No obligation service
• One short form to complete

Mortgages In Retirement Quotes & Advice »

However the good news is that in recent years mortgage providers have begun to change their policies on later life lending.

Watch out for age limits

Despite this development, most banks still place a maximum age limit on their mortgage deals or specify an age limit by which the mortgage must be repaid. The upper age limit for new mortgage applicants tends to be between 65 and 70, depending on the mortgage provider – so if you are in your early 60s, you may not face too much of a problem in getting mortgage approval for your new home.

Do remember, however, to 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

In order to take out a mortgage, you will need to prove that you have sufficient income to repay your borrowing.

In your 60s you may be enjoying the first years of retirement, planning to retire soon, or you may still be working.

Whatever your age, mortgage lenders will want you to fulfill certain criteria before they approve you for a mortgage.

To maximize your chances of getting a mortgage over 60, 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 60s mortgage providers

There are some mortgages available, mainly through mortgage brokers, which are specifically designed with over 60s borrowers in mind.

As with all borrowing on a secured basis a lender will want to ensure you can afford the repayments so your income will be assessed e.g. pension income for both you and your partner if applicable and your outgoings. Lenders will want to see evidence of your ability to repay, and may ask for repayment in full by the time you reach a certain age.