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Mortgage Advisor & Director
As you enter your 60s, your mortgage options can become more restricted, but there are possibilities to explore. Read on to find out what they are…
Can you get a mortgage if you’re over 60?
Yes. If you are applying for a standard residential mortgage your options will be limited compared to a younger applicant, but there are mortgage lenders with a flexible stance to age limits as well as specialist retirement products such as equity release to consider.
The main challenge you will face if you are applying for a regular mortgage or remortgage is the age caps that lenders have for borrowers at the end of the term. This is typically 75 years old, so most providers will only consider you for a mortgage with a limited term length.
This is why it’s important to find a mortgage provider whose criteria for this is less stringent, as well as explore the specialist retirement mortgages available to you.
What are your options?
If you are over 60s, your mortgage options are as follows:
- Take out a mortgage with a limited term: The average UK mortgage has a term length of 25, but if you are over 60 at the point of application and don’t want to compromise on choice of lender, you may only qualify for a 15-year agreement.
- Find a flexible mortgage lender: There are lenders who are happy for borrowers to be as old as 80-90 at the end of the mortgage term, and others who have no age restrictions at all. You could take out a longer-term mortgage with one of these providers, but it could mean that your product choice is more restricted.
- Equity release mortgages: Equity release products such as lifetime mortgages allow homeowners over 55 to unlock the capital tied up in their property as a tax-free loan they don’t need to repay until they die or enter long-term care. The older you are, the more equity you can release - read more in our equity release guide.
- RIO mortgages: These mortgages allow borrowers over 50 to secure a tax-free loan against the equity in their home, one they don’t need to repay until they pass away or go into care. Monthly payments are made so interest doesn’t build up, leaving more of their estate intact at the end of the term - read more in our RIO mortgage guide.
What if you are a first-time buyer?
If you are a first-time buyer over the age of 60, it is still possible to get approved for a mortgage but specialist retirement products like equity release and retirement interest-only mortgages will not be available, as these are exclusively for homeowners.
Your options as a first-time buyer in this age bracket would mainly be taking out a shorter term mortgage or using a lender with flexible age limits.
Guarantor mortgages
Potential alternatives include family support mortgages, such as guarantor agreements. Guarantor mortgages where a younger family member agrees to support an elderly relative are less common, as a typical arrangement would see a parent acting as guarantor for their offspring - but there are a minority of mortgage providers who might consider this.
Your guarantor would usually need to be a blood relative who formally agrees to make your mortgage payments if you are unable to. They will also need to either secure the mortgage against their home, or place a certain amount of savings into an account held by the lender.
Compare mortgage rates for over 60s
You can compare the latest mortgage rates for borrowers over 60 for free on Teito and choose the deal you want in real-time, or have one of our brokers do it for you.
Choose your preferred option below to get started on your mortgage journey:
Compare over 60s mortgage deals for FREE
How affordability is calculated for over 60s
Mortgage affordability is calculated no differently for borrowers over 60 who are applying for a regular mortgage or remortgage. You can typically borrow up to 4.5 times your annual salary, although some lenders might offer you as much as 6 times income.
You can use our calculator below to get a rough idea of your maximum borrowing.
If you are looking for a mortgage in this age bracket, there are specifics around affordability and maximum borrowing that you need to know about, such as:
- Your lender will be keen to see proof of retirement income, such as a pension projection, if you will no longer be working when the agreement ends
- Equity release and RIO mortgages use a different affordability criteria - see our standalone guides to these types of mortgage through the links for more
Best mortgage lenders for older borrowers
The mortgage lenders best placed to cater for borrowers in their 60s are those with flexible age limits and a range of retirement mortgage products available.
The table below shows representative examples of these lenders:
|
Lender |
Products Available |
Age Limits on Product |
|
Traditional, RIO and equity release |
No upper age limit |
|
|
Traditional mortgages |
95 years if receiving pension |
|
|
Traditional and equity release |
80 years on standard interest-only, no upper age limits otherwise |
|
|
Standard and Buy-to-let |
No maximum age limit |
|
|
Lifetime mortgages, RIO mortgages |
No maximum |
|
|
RIO mortgages |
85 years old |
Approaching a mortgage lender directly is not recommended as this will limit you to one range of products, plus professional advice is mandatory if you wish to apply for equity release - applying through a specialist broker means access to the whole market.
Why choose Teito for your mortgage needs?
On Teito you can compare the latest mortgage rates for over 60s for free and access support from a broker who specialises in later-life lending, if you wish to discuss your options.
Here are just some of the reasons people choose us for their mortgage needs:
- You can access the latest rates in seconds
- Our brokers specialise in mortgages for over 60s
- We are 5-star rated on leading review services
- We can secure you an agreement in principle in minutes
Ready to compare the latest rates and take advantage of a free, no-obligation chat with a broker who specialises in later-life mortgages? Get started here.
FAQs
Yes. Although some of the same age restrictions for residential mortgages apply to buy-to-let too, you are likely to find more lenders with flexible age caps and no specific upper age limits in this corner of the market. This is because buy-to-let mortgage affordability is primarily based on rental income, and if it’s sustainable enough, age restrictions can be relaxed.
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.