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Older Borrower Mortgages
David Pettitt answers your questions on mortgages for Older Borrowers.
How do I better my chance of securing a mortgage as an older borrower?
It can be no more difficult to qualify for a mortgage as an older applicant, than it is for a younger one. The qualifying criteria remains the same regardless of age, however, it can be tougher to meet those criteria in retirement, especially when it comes to income levels.
Can you get a mortgage after you retire?
There are a number of options within the mortgage market. Some lenders will let you take out a mortgage after you’ve retired, and some will let you take out a mortgage that won’t be paid off until after you’ve retired.
Generally all you’ll need to do is prove your income from your pensions or other sources are more than enough to cover the repayments on the mortgage. It’s usually easier to do this if you’ve already retired because you can show your pension statements.
What is the age limit for getting a mortgage?
There isn’t a maximum age limit to get a mortgage because we can’t judge people on their age, however, most lenders do have restrictions in place. Some lenders impose an age cap at sixty-five or seventy, but will allow the mortgage to continue into retirement. Some will cap them at age at seventy-five and a handful go up to eighty as a maximum age for repayment.
The term length may be restricted, but you do still have the same options in retirement as you do prior, including the types of mortgage that can be offered. To get a mortgage at any age, make sure you’re creditworthy.
Can I get a thirty year mortgage at age fifty-five?
It will come down to the eligibility criteria of specific lenders, but there will be someone that will offer you that kind of term. The eligibility and the affordability criteria are the most important factors, however, if affordability is difficult, Lifetime Mortgages, a form of Equity Release, can be used from the age of 55 and they are assessed on to the value of the property.
Can I get a mortgage at sixty
Again, yes, and a broker such as myself will be in a position to look at all aspects of the mortgage market for you. There are retirement Interest-Only mortgages where you only pay interest on that mortgage not any capital repayments and then the debt will be repaid once you either move, sell the property, pass away or go into long-term care.
There are a number of options available for older borrowers, so it’s not as big a problem as we would first imagine.
Why can it be harder to get a mortgage when you are older?
The reason that it appears to be more difficult to get a mortgage is because lenders expect your income will fall in your retirement years. To increase your chances of your application being successful, you just need to show the potential lender that you have a solid plan for paying back the money.
Should you use Equity Release?
Equity Release is an option, but it’s a matter of whether it’s the most appropriate option for you at that time. As a broker, I have access to numerous providers and Equity Release may not necessarily be the most suitable option for you, but a broker will be able to make a recommendation accordingly.
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Which lenders lend to older borrowers?
Some lenders specialise in later life lending some will only do mainstream mortgages, but we have good access to all of those products available and sometimes we even get exclusives that are only available through the intermediary market that you won’t be able to find on the high street.
Utilising a broker will save you time, effort and anxiety, as I’m sure you don’t want to go through three hundred available mortgages and weigh up the costs and interest rates.
What types of mortgages can you get as an older borrower?
The same types of mortgages are available to all, Fixed-rates, Tracker-rates, Offset Mortgages or Cash Backs.
HOW CAN A MORTGAGE BROKER LIKE YOURSELF HELP AN OLDER BORROWER?
A Mortgage Broker is going to assist you in finding the most suitable mortgage for your particular circumstances. They will take care of mundane administrative tasks, saving you time, effort, and possibly saving you money. They help you navigate through every stage of the mortgage process to ensure that you understand everything.
An Equity Release product will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits. To understand the features and risks please ask for a personalised illustration.
The Broker Fee for the Equity Release will be a charge of between £0 and £895. The level of the fee will be determined by the complexity of the enquiry and the duration of the research required to assess the needs and provide a suitable recommendation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE