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Can I get a mortgage as an older borrower?

Category: Mortgages
Author: Michelle Monck
Updated: 25/01/2019

For many years, older borrowers – those approaching retirement or already in retirement – struggled to find a mortgage when they wanted to move home or remortgage.

At a glance

  • Older borrowers may need a mortgage to release equity or to stay in their own home if they had an interest-only mortgage
  • There are a good range of lenders now accepting borrowers over the age of 65
  • You will still need to prove you can afford the mortgage

Why might you need a mortgage when you are older?

You may have initially taken an interest-only mortgage which is now nearing completion but have no means of repaying it, and want to stay in your own home rather than selling and moving.

Or, you may want to remortgage your existing property to either release equity for a child or grand child to get onto the housing ladder, or to buy another property such as a holiday home or a buy-to-let.

What is the maximum age for a mortgage?

Different lenders have different limits, but as a guide, when applying the range can be between 65 and 80 and for completion of the mortgage 70 to 85. In fact, some lenders have no maximum ages at all.

Which lenders offer mortgages in retirement?

Challenger banks and building societies tend to have more options open to older borrowers. However, it's always worth referring to our mortgage tables, finding your preferred lender and then asking the question.

Alternatively, you can speak to our mortgage broker, who will be able to advise on which lenders best suit your situation.

What might you be asked to do?

All lenders will need to ensure you meet their affordability requirements. This will mean showing details about your income; for example, retirement income, investments or director dividends, or if you are not yet retired they'll need your planned retirement date, forecast retirement income and pension pot value. If you are self-employed or have a job, then you will also need to confirm your earnings.

What mortgages can older borrowers get?

Generally, the types of mortgage you can get are the same as for younger borrowers, such as fixed or tracker. Retirement interest-only mortgages are also becoming increasingly common. Being accepted for a mortgage as an older borrower is based more on the lender's policy towards maximum age limits.

Top Tip

While there is more choice now for older borrowers, building societies and challenger banks were among the first to start lending to those in or approaching retirement, so could be a great first port of call.

What next?

Compare the best mortgage rates. When comparing mortgages remember you will need to check with the lender that they will accept you as an older borrower.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.