These days, it’s not uncommon for people to become homeowners later in life. But can you get a mortgage even if you’re retired? If so, what’s the maximum age?
First things first: we’re not going to pretend that getting a mortgage past the age of 55 is easy. For a start, it is more difficult to prove retirement income than it is a salary. And secondly, mortgage providers want to be sure you’ll be able to pay off the loan during your lifetime.
It can be done
Difficult, yes. Impossible? No. Some lenders are willing to provide mortgage finance to older people and even retirees, provided they can prove their income. This may be a private or workplace pension, or a mixture of the two, as well as any savings you may have. These details, as well as an outline of your expenditure, will help prove you will have enough to live on and to pay your mortgage for the duration of the term.
Depending on the lender, and your age, you may have to accept a shorter mortgage term or a higher interest rate. This is because most lenders have a maximum age by which they will want the mortgage to be paid off, which can be as high as 85 and as low as 70.
We can work with you to assess the available options for securing mortgage finance that suits your circumstances.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it.