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Mortgage Advisor & Director
Can I get a mortgage past retirement age?
Yes, later life lending options are increasing, and there various mortgages on the market for people past retirement age.
As there are many mortgage products you may not be aware of in this fast-moving market, we would recommend speaking to one of our experienced advisors who can present a range of options. Complete our quick and simple form today to get started.
Mortgage options past retirement age
Mortgages for people past retirement age typically fall into two categories; those who are looking to buy a home and homeowners looking to release equity from their existing home.
Many lenders have increased their maximum age limit, with a few lenders removing maximum age limits entirely.
As people are relying more on equity in their home to fund retirement, mortgage providers have developed a suite of products to suit, with flexibility at the core. For those looking for equity release, there are several options developed to meet the needs of older homeowners.
- Standard mortgages with maximum ages >70 years old - some lenders offer normal mortgages with a higher age limit which may be more appropriate to an over 70.
- Equity release- these products can be the best of both worlds for homeowners. By releasing equity from your home, this can allow you to make home improvements, buy a holiday home or help relatives out financially. You continue to live in your home and won't make any repayments until the property is sold. There can be minimum age restrictions on these mortgage products - read our full guide for more information.
- Retirement Interest-only (RIO) mortgages - with an RIO mortgage you borrow against your existing home or to buy a new home and make interest-only repayments with the full amount owed to be repaid when the property is sold.
- Drawdown mortgages are one of the newer offerings to this sector, where you agree on a maximum loan amount and receive the funds as you need them; only paying interest on the amount you've received.
Reasons for getting a mortgage into retirement
There are a number of reasons why you may consider getting a mortgage in later life:
Remortgaging to allow children to access the property ladder.
Some later life lenders may consider remortgaging their own home to help get their children on the property ladder. As the gap between property prices and salary rises widens, it is more difficult for first-time buyers to access the property market. While there are government schemes available to help, homeowning parents may decide to remortgage to support their children.
Buying a second home or holiday home
It is common for later life lenders to remortgage their primary residence to buy a second home as an investment or a holiday home to spend some quality time. With interest rates at record low rates, it can make economic sense to take advantage of this if you are currently mortgage free or approaching the end of your mortgage term.
Buying a retirement property
Modern, purpose-built retirement homes tend to be set out as a complex or village-style setting, specifically for those over 55. Many retirement properties benefit from shared amenities, including swimming pools and gardens, and provide a programme of social activities for residents. Although they are designed for use by older people, you can be any age to buy a retirement property, with younger families often buying them for their parents.
How do I qualify for a mortgage after retirement
The maximum age for typical mortgages to be paid off is 70 years old, although specialist mortgage products are available exceeding that age.
Prospective lenders will consider your age at the end of term along with your retirement age and your financial situation as a whole.
How can I learn more?
Our experienced advisors at Teito have supported many retired people to take out a mortgage product that is right for their lifestyle and future plans, complete our online form today.
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Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
Last updated 29 February 2024