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Those seeking a mortgage over the age of 55 will find that their options are broader than someone in their early 50s. Read on to find out what they are...
Can you get a mortgage over the age of 55?
Yes. You will find there are options available if you are seeking a mortgage at the age of 55 or over. This is because specialist retirement lending products will become available to you at this age milestone, but you will need to be a homeowner to access these deals.
If you’re a first-time buyer applying for a mortgage in later life, your options will be fewer, and limited to residential mortgage lenders who have a flexible stance to age caps.
The biggest challenge you’re likely to face if you need a standard residential mortgage is that most lenders have a maximum age the applicant can be at the end of the term, with 75 years old being standard. This means you might be restricted on the term length you can secure.
What options are available
If you are a homeowner over the age of 55 seeking a mortgage, you options are as follows:
Equity release
This form of retirement lending allows homeowners over the age of 55 to access the capital they have built up in their as a tax-free loan that doesn’t need to be repaid until they pass away or enter long-term care. The older you are, the more equity you can release.
The most popular type of equity release is a product called a lifetime mortgage.
Read our complete guide to equity release to find out more about these schemes.
Retirement interest-only mortgages
The main alternative to equity release, retirement interest-only (RIO) mortgages allow homeowners over the age of 50 to borrow against the equity in their property as a tax-free loan that doesn’t have to be repaid until they pass away or enter long-term care.
The biggest difference between equity release and RIO mortgages is that, with the latter, you make monthly interest payments, rather than have the interest compounded over the term.
Read our complete guide to RIO mortgages to find out more about them.
Flexible remortgages
If you own a home and need to remortgage over the age of 55, you might need to find a flexible lender, depending on what kind of term length you are looking for.
Many mortgage providers won’t lend to anyone who will be aged 75 at any point during the term, but the good news is that there are flexible lenders whose upper age cap is 80-90, and a small minority who have no age limits at all, as long as you can afford your repayments.
What if you are not a homeowner?
If you aren’t a homeowner and are applying for a mortgage over the age of 55, your options are to take one out with a term length shorter than the standard 20-25 years, or find a lender who is flexible with the age limit in place for borrowers at the end of the agreement.
Your options would typically be the same if you own a home and are applying for a buy-to-let mortgage or a second mortgage at the age of 55 or over.
How much could you borrow?
If you are applying for a standard mortgage or remortgage over the age of 55, the way your affordability is calculated will be no different than it is for younger borrowers.
You can use our affordability calculator below to get a rough idea of this:
If you are applying for equity release or a RIO mortgage, the calculations will be different, but the maximum you can borrow will be 50-60% of the property’s value.
Compare mortgage deals for over 55s
On Teito you can compare the latest mortgage and deals for borrowers over 55 for free. Our service lets you browse rates from more than 90 lenders and choose one in real time.
If you need some help, you can access support from one of our expert brokers at any time.
Choose one of the options below to get started on your mortgage journey:
Compare mortgage rates for over 55s for FREE
Best mortgage lenders for over 55s
The following mortgage lenders are well placed to offer finance to borrowers over the age of 55 due to their flexible age limits and retirement mortgage product range.
|
Mortgage Lender |
Upper Age Limit (End of Term) |
Retirement Mortgages Available |
|
No maximum |
Lifetime mortgages, RIO mortgages |
|
|
No maximum |
Lifetime mortgages, RIO mortgages |
|
|
85 years old |
RIO mortgages |
|
|
No maximum |
N/A |
|
|
85 years |
RIO mortgages |
|
|
No maximum |
RIO mortgages |
Are there any extra requirements for applicants of this age?
Some lenders set a maximum age limit that applicants can be upon application, but this is typically 70-75, so at aged 55 or thereabouts, you won’t be turned away on these grounds.
As we have already explored, lenders also have a maximum that borrowers can be at the end of the term, so being at least 55 at the start might mean less choice of term lengths.
The only other specific requirement for mortgage applicants in this age bracket is proof of retirement income, if the most term runs into your post-working years. Lenders will be keen to see that you have the means to keep up with your mortgage payments in later life.
It is not uncommon for them to request a pension projection to evidence this, or ask for proof of any other income you might be replying on after you finish working.
Why choose Teito for your mortgage needs?
You can compare the latest mortgage rates for over 55s for free on Teito and access professional advice from one of our brokers as part of the service.
Here are just some of the reasons our customers choose us for their mortgage needs:
- You can access rates from 90+ lenders in seconds
- Our brokers can arrange exclusive deals for borrowers over 55
- We are 5-star rated on leading review websites
- You could secure an agreement 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 helping borrowers over 55? Get started here.
FAQs
Most experts would recommend that anyone over 55 who is applying for a mortgage should at least consider life insurance, home insurance, and critical illness cover or income protection if they are still at work. Our brokers can recommend policies for you.
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.