Over 60s Mortgage
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Over 60s Mortgage
Sam Bull talks to us about mortgages for the over 60s.
Can I get a mortgage if I’m over 60? Is it harder to get a mortgage if I’m over 60?
Mortgage lenders all have their own policy on maximum age at the time of the mortgage application, and age at the end of the mortgage term.
Lots of mortgage lenders link the end date to the applicant’s 70th birthday. So for applicants over age 60, this can result in a relatively short mortgage term. However, other mortgage lenders are happy to lend past applicants’ 70th birthdays and allow a longer mortgage term.
We would complete a fact-find with each applicant and then recommend the most suitable mortgage lender, depending on their individual circumstances.
What types of mortgages are available for over 60s? Are there specific mortgage products for older borrowers?
Traditional residential mortgages are still available to all borrowers, depending on their current age and how long they want the lending over.
Mortgage products such as fixed rates, variable, tracker and discounted products are still available for applicants over the age of 60. We would make the appropriate mortgage recommendation depending on the client’s requirements.
Typically, mortgages for over 60s are on a repayment basis, but if clients do have a suitable repayment vehicle in place, there are still lenders that will offer interest only mortgages.
There are also mortgage products that are only available to older borrowers,
such as lifetime mortgages, retirement interest only mortgages, home reversion plans and equity release. This is specialist lending and requires specialist mortgage advice, to run through the pros and cons of each and how they may or may not suit you.
Are there many older borrower-friendly lenders?
Yes, lots of mortgage lenders are happy to lend to older borrowers, such as Barclays, Halifax, Santander, TSB and Kensington, just to name a few.
They will all have their own mortgage lending criteria, so as always we would run through a fact-find with the client and then recommend the most appropriate lender.
Do I have to take a shorter term mortgage if I’m over 60?
Yes. Mortgage lenders do have limits on the maximum age at the point of application and at the end of the term. Therefore, the older the borrower, the shorter the term they’ll be able to take.
However, some mortgage lenders have no upper age limits. They assess each applicant on a case-by-case basis, and therefore a 25 year term may still be available for applicants over age 60.
How much can you borrow when you’re over 60? Will I need a larger deposit if I’m 60 or older?
Mortgage lenders will carry out a standard affordability check. Even if you’re over age 60, you can generally borrow around 4.5 times your income. However, this will vary depending on the type of income you receive and your retirement plans.
The shorter the mortgage term, generally the less you could borrow. In terms of the deposit, you can still put down a minimum of a 5% deposit for a residential mortgage, even over age 60. This will just be subject to the maximum amount of mortgage you can get.
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Everyone’s different. You might be self-employed. You might have some credit history issues – whatever your situation, we will find the most suitable product available to you from across the whole market.
Can you get a mortgage after retirement? Can I still get a mortgage if I only have a pension as income?
Yes, you can get a mortgage after retirement. Lenders are happy to use pension income as income for mortgage purposes. The length of the mortgage available will depend on the lender’s criteria and whether they have a maximum age at the time you apply, and the maximum age at the end of the mortgage term.
Some mortgage lenders have no maximum age limits at all, so there are plenty of options available to the over 60s.
What if I’m over 60 and have bad credit? What are my options?
You may still be able to get a mortgage if you are over 60 and have bad credit. We would treat this like any other mortgage application.
The first thing we’ll do is request a copy of your credit report, so we can recommend a suitable mortgage lender who can accept the bad credit. Your options will depend on the details of the credit issues and how long ago they were registered on your credit report.
Can I get a mortgage if I’m over 60 and self-employed?
Yes, you can get a mortgage if you are over age 60 and self-employed. The usual criteria will apply. Mortgage lenders will need to see your latest three years’ limited company accounts or self-assessment tax calculations, and they will generally average your last two years’ income to use as your assessable income.
The type of work you do will affect your options, too. For example, if you’re in non-manual work, you may be able to get a 25-year mortgage with a lender that has no upper age limits. However, that changes for self-employed manual workers.
If you are a scaffolder, it’s likely you’ll only be able to take out a mortgage up to your retirement age or age 70, whichever is sooner. Again, it all depends on each person’s individual circumstances.
Can I get a Buy to Let mortgage if I’m over 60?
Yes, you can get a Buy to Let mortgage if you are over 60. Buy to Let mortgages are self-funding and therefore age limits are less important. There are therefore lots of mortgage lenders with no upper age limits at all.
There are quite a lot more options available if you’re looking to proceed with a Buy to Let mortgage.
How do I increase my chances of getting a mortgage over 60?
You can increase your chances of getting a mortgage by keeping a clean credit history and making sure all your credit commitments are paid on time.
The usual things, such as keeping your unsecured debt levels low, will also help with getting a mortgage. For people with a desk job, it’s quite reasonable that they can work to over 70 or even 80, so non-manual workers especially have a good chance of getting a mortgage.
What can I do if I’m over 60 and my mortgage application is rejected?
It’s best to speak with your mortgage broker. We would request a copy of the credit report and carry out a full fact find, and get all the details of the application that was rejected.
We’ll find out the reasons why that happened, make the appropriate enquiries and then find a new mortgage lender that would be happy to lend based on the circumstances.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.