Over 55s

Can over 55's get a mortgage?

In the past few years, over 55's have seen a dramatic increase in available mortgage products.  Over 55's now have lots of options for borrowing, whether you choose to carry on working or are considering retirement. 

As a whole-of-market mortgage broker, at Teito, our team of experienced advisors have access to a range of deals open to people over 55, including those not available on the free market. 

Complete our online form today to get started or carry on reading to learn more. 

Why would over 55's consider a mortgage?

There are many reasons why over-55s might be looking to get a mortgage.

Remortgaging to help children access homeownership

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 main home 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. 

How do I qualify for a mortgage as an over 55

The maximum age for typical mortgages to be paid off is 75 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. 

What are the options?

There are typically three mortgages available to over 55s

• Standard mortgages with maximum ages >75 years old - some lenders offer normal mortgages with a higher age limit which may be more appropriate to an over 55. 
• 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. As an over 55 you are likely to qualify. 
• 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. 

What else should I consider?

You should probably consider taking out life insurance if you are looking to secure a mortgage later in life.

While not compulsory, if you were to pass away, your family would be liable for making mortgage repayments, which might not be possible. 

How can I learn more?

Our experienced advisors at Teito have supported many over 55s to take out a mortgage product that is right for their lifestyle and future plans.

Whether you plan to carry on working or are starting to consider retirement, complete our online form today for a no-obligation chat.