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Age is just a number, or so the saying goes, but it does matter if you’re applying for a mortgage. If you’re aged 50 and over and want a mortgage or to remortgage into retirement, you may struggle to get the loan you want. Here’s our guide to getting a mortgage if you’re over 50.
It may not be possible to get a mortgage at any age, because lenders often impose upper age limits on each mortgage. It’s not unusual to see an upper age limit for new mortgages of 65 to 70, or age limits for repaying a mortgage that range between 70 and 85.
Banks and building societies are likely to be reluctant to approve loans that extend beyond retirement age. This is because that’s when your income is likely to drop. Despite the fact plenty of borrowers will continue to earn beyond retirement age and be able to support a mortgage, either through working longer or by using income from savings and investments.
Are mortgages for over 50s an option? The reality of this is that if you’re 50 and planning to retire at 60, you may find it harder to get a mortgage. And if you do secure a mortgage, you may have to repay it before your 70th birthday – this would mean a term of 20 years. A shorter term means more expensive monthly repayments, at a time when your income may fall as you enter retirement.
However, some lenders are more amenable to older borrowers and will often lend beyond the age of 75 on a case-by-case basis. For example Market Harborough Building Society, Bath Building Society, and Mansfield Building Society will lend up to the age of 85 – and Leek United doesn’t have a maximum age.
Another option you may consider is a retirement interest-only mortgage. A retirement interest-only mortgage is a home loan aimed at older borrowers who may struggle to get a mainstream mortgage due to age limits.
If you’re looking at mortgages for over 50s, it’s a good idea to get advice from a mortgage broker. They will know which lenders are more amenable to older borrowers.
The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
One of the best ways to increase your chances of getting a mortgage in your 50s is to have a clear plan of how you will pay the loan back. Knowing your budget and your monthly outgoings will help you understand how much you can afford to borrow.
You should also check your credit report, and look at improving your credit score ahead of a mortgage application, as this will also increase your chances of approval.
For mortgages for over 50s, you will need to prove you have adequate income to cover the repayments post-retirement in the same way as you would if you were working full-time. You should expect to show your bank statements and a statement that confirms your pension payments or evidence that you are receiving a pension. Your lender will also look at your regular expenditure to assess an affordable borrowing amount.
As you near retirement, you will need to show a statement with a forecast of your income in retirement. When you are more than 10 years away, mortgage lenders may only want to see whether you are contributing to a pension(s). If you’ve had different jobs over the years, check back through your files to see you have details of all the different pension schemes you may have been contributing to.
If you want to port your mortgage – which means taking your mortgage with you when you move home – you essentially have to reapply for your existing loan. Your lender will reassess you as if you are applying for the loan for the first time. You will need to meet their new affordability criteria. Even if you are in the same financial position as when you first applied for the loan you could still get rejected. If you are going to see a fall in your income post-retirement, they will also take account of that.
Your lender may also have lowered their upper age cap which may mean, depending on your age, that you may not be able to get the mortgage term you want.
If your mortgage application gets refused, don’t think that’s it. If you’ve been turned down by one lender that doesn’t mean that other mainstream and specialist mortgages for over-50s lenders won’t lend to you.
It’s a good idea to get advice from a mortgage broker so that you can understand your options.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
HomeOwners Alliance Ltd is an Introducer Appointed Representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
