All about mortgages for the over 60s?
As we approach retirement, applying for a mortgage can be more of a challenge. Mortgage providers know that income tends to drop in retirement and so prefer to lend to younger people, which means they offer fewer mortgages for over 65s.
However, the UK has an ageing population. According to the Office of National Statistics one in four people in the UK will be aged 65 years and over by 2050, an increase from approximately one in five in 2019.
What's more, with many choosing to settle down and have children later in life, searching for mortgages for over 60s, or even mortgages for over 65s, is becoming a very common occurrence.
Mortgages for older people explained
You may require an over 60s mortgage because you wish to move house or get a cheaper remortgage deal.
Some lenders have higher age limits than others, so while you're likely to find a mortgage you will not have the same choice of deals as a younger borrower.
How to find a mortgage for the over 60s
Lenders are taking notice of the need for mortgages in later life and the number of relatively cheap mortgages for over 60s and mortgages for over 65 is increasing.
This comparison table includes every deal that may accept borrowers aged over 60. You can use it to check the maximum age you can be when you apply for each mortgage.
You could also use a broker to provide mortgage advice for the over 60s.
How to get a mortgage if you are an older borrower
How long does a mortgage for over 60s last?
The amount of time you get to pay off your mortgage if you are 60 or over depends on:
How old you are when you take out the mortgage, lenders will have maximum age limits ranging from around 70 to 85
How old you are when the mortgage ends, the limit can range from about 75 to 95
So if you are 60, you would be eligible for a mortgage with a maximum application age of 65. However, if it has to be paid off before you turn 75, you could only take it out for a term of fifteen years or less.
Can you afford a mortgage over 60?
Even if you are retired you still may be able to afford to pay a mortgage. It helps to have:
If you own your own home and you are using your mortgage to free up equity with an over 60 lifetime mortgage you will not need to make monthly repayments so you will not need to provide proof of income.
The older you are, the shorter the mortgage term will be.
The different types of mortgage for over 60s
You can get most types of mortgage if you are an OAP. You need to decide which kind of interest rate you should get from the following:
Fixed rate
Variable rate
Tracker rate
Discount rate
Stepped rate
Capped rate
Here is how to decide what type of mortgage is best for you
