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Mortgage Advisor & Director
Those seeking a mortgage in later life now have more choice than ever, but what are your options if you are over 50 at the point of application? Read on to find out.
Are there mortgages for over 50s?
Yes. The biggest challenge you will face if you are applying for a mortgage in your fifties is that most lenders have a maximum age the applicant can be at the end of the application. This is usually 70-75, meaning you might be restricted on the term length you can apply for.
In the UK, a standard mortgage term is 25 years, so if you were to apply at the age of 52, for example, you may have to settle for a shorter term at most lenders. This might not be an issue for many, who may only be seeking a shorter mortgage, but keep in mind that agreements with a lesser term length can have high monthly repayments.
If you need a standard term, the good news is that there are lenders who are flexible with age caps, and specialist types of later-life mortgage you can consider too.
What are your options?
If you are applying for a mortgage over the age of 50, your options are as follows:
- Shorter-term mortgages: You won’t be restricted on lender choice if you are willing to take out a mortgage over a shorter term. Those seeking a mortgage of 25 years or longer will see their options begin to decrease the further into their 50s they get.
- Flexible lenders: If you need a mortgage with a term length of 25 years or more, you will need to find a specific lender. There are mortgage providers with an upper age limit of 80-95 for the end point of the application, and others with no maximum at all.
- Equity release mortgages: Will become available if you’re a homeowner over the age of 55. These products allow you to access the equity tied up in your property as a tax-free loan that doesn’t need to be repaid until you die or enter long-term care.
- Retirement interest-only mortgages: An alternative to equity release for borrowers aged 50 and up. RIO mortgages work similarly to equity release but the interest is paid off monthly rather than rolled up and repaid from the borrower’s estate.
Unsure which option to choose? There are brokers on our team who specialise in mortgages for over 50s and they would be happy to offer you a free, no-obligation chat.
Compare over 50s mortgage rates
Interest rates are no different for older borrowers applying for standard residential mortgages. You can compare the latest rates and deals for people over 50 for free on Teito or speak to one of our mortgage advisors if you need some help. Get started below:
Compare mortgage rates for over 50s for FREE
Are the rates any different for equity release?
Yes. Equity release products such as lifetime mortgages have their own set of interest rates, but the interest charges are usually rolled up, compounded and added to the loan amount. This means you will not need to pay it off until the end of the term, via the sale of your home.
Retirement interest-only mortgages also have unique interest rates, which are generally higher than they are for standard residential interest-only mortgages.
Please note that you won’t find equity release or RIO mortgage deals on our comparison service - speak to one of our advisers to find out what rates are available for these.
Which lenders offer mortgages for over 50s?
All lenders will at least consider offering a mortgage to an applicant who is over 50, but some are better equipped than others to meet the needs of older borrowers.
As we have already touched on, some mortgage providers have a strict age limit for the end point of the application, which might be restrictive to some borrowers in their 50s.
With this in mind, the table below shows example of mortgage providers who are well placed to lend to older borrowers due to their flexible age requirements:
|
Mortgage Lender |
Age Limit (End Point Of Application) |
|
80 Years |
|
|
80 Years |
|
|
85 Years |
|
|
85 Years |
|
|
90 Years |
|
|
95 Years |
|
|
No Maximum |
|
|
No Maximum |
Are there extra eligibility requirements for this age group?
The only specific criteria to be aware of is around age limits, which we have already covered in depth here. General mortgage eligibility is otherwise the same for applicants over 50 compared to younger borrowers, although there may be more scrutiny around affordability.
If the mortgage term will be running into your retirement - which is likely if you are in your 50s at the point of application - the lender will be keen to see that you can keep up with your mortgage repayments after you finish working. To prove this, you may need to provide a pension forecast or evidence any other form of income you might rely on in later life.
Mortgage calculator for over 50s
You can use our calculator below to work out how much you can borrow. People over 50 will qualify for mortgages based on the same income multiples as everyone else - most lenders will let you borrow up to 4.5 times income, while a few will stretch to 5-6 times salary.
Why choose Teito for your mortgage needs?
On Teito you can compare mortgage deals for over 50s for free and speak to a broker who specialises in this demographic, if you need expert advice about your options.
Here are just some of the reasons our customers choose us for their mortgage needs:
- You can access the latest mortgage rates in seconds
- Our brokers can access exclusive deals for over 50s
- We are 5-star rated on leading review websites
- You can secure a mortgage in principle in minutes
Ready to compare mortgage rates for free and take advantage of a free, no-obligation chat with a broker who specialises in mortgages for over 50s? Get started here.
FAQs
Yes. It is not uncommon for over 50s to apply for a second mortgage to buy another property, to serve as a second home or holiday property. The same age limits apply here but it is often affordability that is the biggest hurdle, as your mortgage lender will place extra scrutiny on the to ensure you have the means to pay two mortgages at once.
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.