Older homeowners enjoy lower loan rates | moneyfacts.co.uk

Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.

ARCHIVED ARTICLE This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.


Lieke Braadbaart

Online Writer
Published: 25/07/2018
retired woman working on laptop holding documents

Exclusive data from Loans Warehouse reveals that homeowners over the age of 65 are enjoying the lowest secured loans rates, on average, with an advertised annual rate of 7.89% compared to the 21-to-30-year-olds' average of 18.39%.

Much of this could be explained by the fact that they require a lower loan-to-value (LTV; which in this context refers to the combined amount of the secured loan and the borrower's unpaid mortgage amount as compared to the value of the property that is being used as a security). Naturally, the longer you have been a homeowner, the lower your LTV will be – provided you've got a repayment mortgage.

Specifically, those over 65 have an average LTV of 41.85%, while people who are between 21 and 30 years old have an average LTV of 77.12%, those who are 31-45 have an average of 70.60% and the remaining age bracket (46-65) has a reasonably low LTV of 59.05%, with an average APRC of 12.63%. Both the lower LTV and lower interest rate are a great boon for those aged 65-plus, as they are also the age bracket with the lowest average income.

While young borrowers aren't far behind, with an average income of £23,454 among those aged 21 to 30, those 65 or older average £19,592.13, likely due to many being solely dependent on their retirement savings. This may be why they are taking out nearly the highest average loan amount of £35,266.88, which could be used to renovate their home to make it easier to navigate in older age, to go on an amazing holiday with their kids and grandkids, or even just to supplement their income for a little while.

Those nearing retirement actually have the highest average loan size, with 46-65-year-olds taking out £36,365.06 each. In contrast, the needs of the youngest homeowners appear to be the most modest, with an average loan of only £23,583.72. This reflects the wide variety of reasons that people have for taking out a secured loan, with different age groups naturally having different needs.

Indeed, the main constant across borrowers is that the majority apply as a couple, although those aged 30 or younger tend to simply be living together while the majority of older borrowers are married. Many people may not even be aware that you can make a joint application, which could ease the financial burden of repayments greatly.

What next

Given the many different aspects there are to secured loans, there's every reason to click through to the secured loans page, which includes not only a table with deals but also answers to the most frequently asked questions.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. 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.

retired woman working on laptop holding documents


Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy